Stock Idea; State Bank of India

The only Indian Bank to find place in the Fortune Global 500 List (2008), going up from the 495th spot last year to 380th place, SBI is a banking stock, enjoying immense fancy amongst the investors. The sheer size and reach of the bank is so large that for any new generation bank, to even think of making it to half a mark as SBI would be an achievement in itself.
SBI, as a stock has been seeing some volatile movements over the past few days. When the financial crisis broke out in USA, like all banking stocks, SBI too lost a lot of ground. But once the Finance Minister categorically stated that public sector banks have no or minimal exposure to this crisis, SBI, from the biggest loser became the biggest gainer. And 2008 has seen investor’s faith getting restored in public sector banks, especially SBI.
Financially, it has been doing well. The Bank has shown a business growth of 106% on YoY at Rs.10,8881 crore, helped by higher fee and interest income. Operating profit grew by 54.52% to Rs.4193.20 crore. Increased interest and other income helped improve the operating profit. Net profit was at Rs.2378 crore for Q2FY09 as against Rs.2151 crore in Q2FY08.
Deposits grew to Rs.57861 crores, up 68% and advances grew to Rs.51020 crore, up 162%. Large corporate advances has grown by 48.46%. Home loans grew by 23.47%, auto loans by 30.48% and education loans by 43.81%.
Gross NPA ratio improved to 2.51% and net NPA to 1.34%. CAR of the Bank as on 30.09.2008 is 12.14 % and Tier I CAR is 8.67 % as per Basel I.
SBI is the largest bank, it has currently got a network of 11,111 branches. In terms of sheer reach, it is way ahead of others, giving it the edge over all others. It continues to remain the trusted bank in rural India. Undoubtedly, the most bankable stock in these uncertain times.

Source: sptulsian.com

Stock Idea: J. Kumar Infraprojects

J. Kumar Infraprojects went public with an issue of 65 lakh equity shares of Rs.10 each, at Rs.110 per share, on 18-01-08. Share got listed on 12-02-08 and closed at Rs.103 on that day. Its all time high was Rs.131 touched on 22-05-08 and low at Rs.56 made on 29-12-08. Now it is ruling at Rs.61.
The company is a civil engineering contractor and infrastructure development company with strong presence in Mumbai, constructing various flyovers and skywalks in the city. Majority of these works have been given to the company, due to better track record. As of date, its order book is of Rs.1,284 crores, which are likely to get executed in the next 30 – 36 months.
The company has been able to maintain its growth momentum, due to better order book. FY 08, total income of the company was at Rs.217 crores with PAT of Rs.19.50 crores, which has resulted into an EPS of Rs.9.42 on equity of Rs.20.72 crores. For first six months of FY 09, its total income is placed at Rs.170 crores with PAT of Rs.13.79 crores yielding an EPS of Rs.6.66. Second half of these companies are always better so one can expect a topline of Rs.400 crores and bottomline of Rs.31 crores, which should result in an EPS of Rs.15. This results into a PE multiple of about 4 times
In the recent times, all the contracting companies are ruling at a PE of 4 to 6 times, due to fear of slowdown which may impact bottomlines and topline of such companies. Also, due to presence of the company in Mumbai City, it goes to its disadvantage.
The company had mobilized Rs.70 crores from IPO, of which, Rs.60 crores has already been utilized. The good part about the issue was, that Rs.51 crores were earmarked for purchase of capital equipments, which is key for any contracting company. This reduces the lease and hire charges, substantially for them, as life of such equipments are quite long.
One more best thing for the company is its low gearing with debt equity ratio of just 0.25 : 1. Of its net worth of Rs.125 crores over Rs.100 crores has been used for purchasing capital equipments. Even debtor cycle of the company is quite under control, as compared to other similar companies. Overall, financial control and management of the company is quite good.
Those who have acquired the stock in IPO, are advised to remain invested with 12 months view. Those who wants to make fresh entry, can buy at 60 levels with a view to exit at 72 to 75 levels which is likely in the next 30 – 40 days. Downside from hereon is minimal.

Source: sptulsian.com

Stock Idea: Bharti Airtel

During the second quarter period ended 30th September 2008, Bharti Airtel made the highest ever-net addition of 82.11 lakh customers in a single quarter.And this factor alone helped the company end Q2 with a robust performance, showing no stress of any slowdown. This again was despite the average revenue per user (ARPU) coming down from Rs 350 per month to Rs 331 on a QoQ. The minutes of usage per user also dipped from 534 to 526 QoQ. The company also posted a forex loss of Rs.586 crore during the quarter.
Notwithstanding these factors the performance for Q2FY09 has been good. On a YoY, the consolidated total revenues was up 42% at Rs.9,020 crore. The mobile business accounted for 81% of total revenues. EBITDA rose 37% at Rs.3,699 YoY. PAT was up 27% at Rs.2,046 crore. It generated cash profit of Rs.3,125 crore, up 20% YoY.
Bharti had 7.99 crore subscribers, as on September 30, 2008, an increase in the total subscriber base of 57% over the corresponding period last year and maintained its leadership position through an improved market share of all India wireless subscribers at 24.6% as on September 30, 2008, up from 23.4% corresponding to the same period of last year.
The company anticipates to launch its 3G services in the six months of spectrum allocation. The 3G spectrum is due for auction on 30th Jan’09 and allocation will take place within a few after auction. With RCom launching its GSM nationwide, Bharti is sure to feel the heat and once number portability also comes, market share of Bharti could get eaten away by RCom.
Telecom is one sector which remains unaffected to a large extent by the slowdown and Bharti being the number one telecom company of India, is a good long term stock in your portfolio.

Source: sptulsian.com

Intraday Trading Calls for 02nd January

Indian Stock Market may open flat to positive and a good positive closing expected with high volatility.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
RANBAXY	Buy Above	252.20	258.55	265.00
	Sell Below	247.50	242.30	238.00
HIND OIL EXPLORATION	Buy Above	69.30	71.55	74.00
	Sell Below	67.40	65.15	62.00
IVRCL INFRA	Buy Above	151.70	156.45	162.00
	Sell Below	148.50	145.25	141.00
HDIL	Buy Above	141.80	147.10	152.00
	Sell Below	139.40	135.25	131.00
LIC HOUSING FINANCE	Buy Above	234.10	239.40	245.00
	Sell Below	229.80	225.45	220.00
RAJ TV	Buy Above	50.60	54.25	58.00
	Sell Below	48.50	45.35	43.00
JB CHEMICAL	Buy Above	42.80	45.55	48.00
	Sell Below	41.40	39.25	36.00

Short to Med Term Delivery Buy (Penny Stock):

Buy Saboo Sodium Chloro Ltd (530461) CMP Rs. 5.80/- Target Rs. 10-12/-.

GOOD LUCK