Stock Idea: IDBI Bank Ltd.

House View: IDBI Bank Ltd.
About the Company: A Development Financial Institution (DFI) transformed into a full-service commercial bank and named as Industrial Development Bank of India Ltd (IDBI). Later in 2005, IDBI Ltd. merged its banking subsidiary 'IDBI Bank' with itself, IDBI is now a universal bank. Bank has been on the path of growth by adopting a strategy of developing a larger client base in the mid-corporate, SME and retail sectors, while nurturing the deep relationships that already exist in the large corporate sector. The employee productivity of state-run IDBI Bank is the highest among all domestic banks in the country in 2008-09, according to a RBI report. In terms of profit per employee also (total profit of the bank divided by the number of employees), IDBI has done well. Recently the bank has entered into an MoU with Chevrolet Sales India Pvt Ltd (CSIPL) for providing auto finance to prospective customers of the latter. The tie-up will benefit both -- IDBI Bank in further strengthening its position in the retail loan space and CSIPL in leveraging the retail financing strength and reach of the bank. On the path of expansion, the bank along with Union Bank is planning to venture into asset management space and have approached the market regulator Sebi for approval. In the coming year, the emphasis on growth in retail business would continue, without compromising your Bank's pre-eminent position in the corporate banking business
Technicals: The counter has been a slow and steady performer and has been witnessing a continuous upside momentum since last couple of months. Counter bottomed out in March 2009 at the level of 40-45 and since then it started to retrace back to its IPO level of 130. Volumes have also seen a considerable rise since March 2009. Recently it has given a breakout of a trading range of 94-115 and is currently trading at 124. Now the next small resistance for the counter is placed at 134-135 level, a breakout above this level will give a boost to the counter for the further upside. As per other technical indicators it is trading well above the crossover of 9 & 18 days WMA and 50 days SMA. This indicates the counter is bullish in medium to long term. 14 Days RSI is trading at 73 level, with upward bias. But according to this the counter is already in over bought zone; therefore we may see some correction in prices in the near term. Overall the trend remains positive for the counter. So any dip in price levels from here will be taken as an opportunity to make fresh long position. It is taking strong support at 105 level. Next target is placed at 160.

Source: Internet (Valuenotes by RR Securities)

Intraday Trading Calls for 29th September

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
TANLA SOLUTION	Buy Above	73.70	77.40	80.00
	Sell Below	72.35	69.50	67.00
CRANES SOFTWARE	Buy Above	44.75	47.25	50.00
	Sell Below	43.40	41.20	39.00
REL POWER	Buy Above	167.55	172.30	178.00
	Sell Below	164.50	160.70	156.00
YES BANK	Buy Above	190.55	195.45	200.00
	Sell Below	187.35	184.05	180.00
CHAMBAL FERT.	Buy Above	56.60	59.20	62.00
	Sell Below	55.40	53.10	50.00
UNITED PHOSPH.	Buy Above	165.75	170.10	175.00
	Sell Below	163.25	158.70	154.00
SUNPHARMA ADVANCE	Buy Above	82.50	86.10	90.00
	Sell Below	81.05	78.25	75.00

Buy Reliance Power (532939) CMP Rs. 166/- Short to Med Term Target Rs. 200/-. with Strict Stop Loss Rs. 155/-.

GOOD LUCK

Stock Idea: Indusind Bank

Company overview—
Indusind Bank was incorporated on January and obtained Certificate of Commencement of Business in February 1994. The bank was promoted by IndusInd Enterprises and Finance Ltd. (IEFL) and five Mauritius based companies viz. IndusInd International Holdings Ltd. (IIHL) IndusInd (Mauritius) Holdings Ltd. (IMHL) IndusInd Ltd. (IL) IndusInd Investments Ltd. (IIL) DeFive Mauritius Holdings Ltd. (DFMHL). The bank commenced commercial operation in April. It undertook all kinds of banking business. The bank proposed to set up an investment bank as a subsidiary of the bank for concentrating on various faces of investment banking viz. issue management, corporate advisory service, infrastructure financing, mergers and acquisitions, trading and depository services etc. It also proposed the concept of "investment boutique" at selected branches viz. Ahmedabad, Chennai, Mumbai etc. All operating outlets have direct access to Nostro Accounts through sophisticated computerized system "SWIFT".
Products & Services—
Indusind bank is one of the leading private sector banks having a nationwide presence to cater all the needs of retail as well as corporate customers. It has introduced a number of technologically superior products -- like fast Forex, anywhere banking, Internet banking and depository services--through the electronic delivery channels. Bank has a state-of-the-art dealing room at Nariman Point, Mumbai, catering to several additional positions of dealers and corporate analysts aimed at further enhancing the profitability of its investments. The bank caters to the needs of NRI customers over 40 countries. Bank has successfully launched the “anywhere banking” concept and bank's customers can look at it as 'one Bank'. Bank has Fast Forex facility to wipe out delays in sending and receiving funds to and from foreign centers. Fast Forex is an international remittance product utilizing the 24-hour processing and communication capabilities of SBC Warburg, the bank's USD clearing agent, through their electronic banking system Keylink.
IndusInd Bank Ltd has 24-hour online Net Banking service. This facility serve as an alternate delivery channel that IndusInd Bank offers its customers in addition of branch banking, on-line ATM's and tele-banking. Bank also sells certified pure “Gold coins and Bars” in the 5 gram, 10 gram and 50 gram packs.
IndusInd Bank has tie up with HSBC for issuing global credit card under the MasterCard franchise to its customers. IndusInd Bank Limited has launched its exclusive international remittance system-FAST (Fully Automated Straight Through) Forex. Bank has appointed Tata Consultancy Services for implementation of the asset-liability management (ALM) plan of the bank. Bank has tied up with the cellular company, Orange, for short messaging service facilities for mobile banking in Mumbai. The Bank has signed an agreement with Financial Software and Systems for acquisition of the BASE24-ATM switch.
The Bank has launched its global credit card, to be issued in association with the Hong Kong and Shanghai Banking Corporation Ltd. under the MasterCard franchise. IndusInd Bank has launched an e-broking platform, eTrading, at its Mumbai main branch to facilitate online trading of equity shares.
IndusInd Bank has alliance with Kothari Pioneer Mutual Fund. Bank has entered into a strategic alliance with Sri Lanka-based National Mercantile Bank. IndusInd Bank got RBI permission to set up offices abroad. Bank secures ISO 9001:2000 certifications for all its branches in the 10th year of its operations. IndusInd bank hired KPMG Consulting for assisting the bank to develop an enterprise wide risk management framework to cover risks across all function streams. IndusInd has tie-up with many banks for sharing of ATMs. IndusInd Bank merged Ashok Leyland Finance with it. This merger enhanced its area of operations in the vehicle finance. IndusInd Bank has tied up with LIC of India for Group Insurance Scheme. Bank also introduced Indus Easy Savings Account to its retail customers.
Financials—
IndusInd Bank has reported a rise of 4.53 times in the net profit for the quarter ended June 2009. During the quarter, the profit of the bank was at Rs 8,650 lakhs as against Rs 1,910 lakhs for the quarter ending on Jun.30, 2008. In the same period, interest earned was reported at Rs 62,883 lakhs, a rise of 19.06% over the prior year period. Meanwhile, interest expended was at Rs 46,146 lakhs, a rise of 8.48% over the prior year period.
Valuation—
IndusInd Bank is increasing its presence in the retail business rapidly. At current market price, Stock is trading at attractive valuation of 8.96 P/E multiple of its FY2011 Estimated EPS. We recommend investors to BUY “IndusInd Bank Limited” with medium to long-term investment prospective.
Source: Internet (Valuenotes by Abhishek Jain)

Stock Idea; International Travel House Ltd

International Travel House Ltd (Rs 110)
(BSE Code - 500213)
(P/E - 10, ITC Group Stake - 61.69%, Market Cap - Rs88 cr)
International Travel House (ITH) is an associate Company of ITC - one of India's largest business conglomerate. ITH is India's premiere travel and tourism company offering full bouquet of travel solutions and services like air tickets, business travel, car rentals, conferences, exhibitions, forex, event management, inbound and outbound leisure trips. ITH commenced operations in 1981 and its expertise has been built up over 28 years and is now one of India's largest travel management company with presence in 13 cities. ITH is one of India's largest branded Car Rental companies with 13 Car Rental Offices in the major Indian cities and a fleet of 900 cars. ITH is one-stop-shop for tourists, whether corporate or leisure and its corporate clients include many of the largest and most discerning corporates such as Infosys, Samsung, Sun micro, Citibank, Bharti Airtel, Siemens etc. apart from the ITC group. Over the years, ITH has grown to be one of the largest Complete Travel Management companies in India.

Tourist arrivals into India have grown at an average of 18.7% p.a. in the last three years. The boom times witnessed by the India travel and tourism industry in the past and the higher disposable incomes have resulted in more Indians going for holidays in Indian and abroad. To sustain growth of 18-20% p.a. in foreign and domestic tourist traffic achieved recently, an improvement in overall infrastructure facilities, specific connectivity to important tourist sites and an increase in investment in the hospitality sector are needed. All this augurs well for ITH and a window of opportunity lies for ITH, which runs a huge fleet of 900 cars, has access to the Welcomgroup of Hotels, is a authorized currency changer and provider of global scale Hotel and Airline bookings.

For the Q1 ended June 2009, ITH has posted a net profit of Rs 1.67 cr.(down 35.5%) on net sales of Rs 17.69 cr.(down 14.7%). The poor results can be attributed to general economic slowdown which led to decline in corporate and leisure travel. For the year ended March 2009, ITH had posted a net profit of Rs 8.19 cr (down 22%) on net sales of Rs 79 cr (flat). On a equity of 7.99 cr (Promoters' stake - 61.69%) the EPS is Rs 10.25 and the dividend declared is 30%.. At CMP of Rs 110 the ITH stock trades at 10.7 times FY09 earnings and at 9.1 times FY10E earnings (Rs 12). Given its parentage, the future of ITH appears promising. Moreover the current slowdown in the travel and tourism sector offers investors an attractive opportunity to accumulate the ITH stock at current low levels and more on declines. Also, as the company is poised to launch its online portal soon to boost its retail travel market share, the stock should fetch better and higher valuations. With the current improving sentiment for Hotel and Tourism stocks, the ITH stock is bound to do well in the medium term. 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: Tata Elxsi Ltd.

Tata Elxsi Ltd (Rs 175)
(BSE Code - 500408 NSE Code - TATA ELXSI)
(P/E - 9, Dividend Yield - 4%, Market Cap - Rs545 cr)
Tata Elxsi Ltd (TEL) is a technology company with a distinct focus on design. It delivers outsourced product design and R&D services and solutions to customers worldwide through four core practices: product design services, engineering design services, system integration services, and visual computing labs. The company has a team of more than 2,000 engineers and designers. Tata Elxsi broadly operates under two divisions - software development services (85% of revenues) and systems integration. The software development division comprises of two high growth areas - product design services catering to clients in consumer electronics, multimedia, wireless communication and automotive electronics. The visual computing division develops graphics and special effects and creates animation films.

Tata Elxsi's product design services offerings address a wide variety of specialized technologies ranging from automotive systems, very large-scale integration (VLSI) design, embedded systems, networking, digital signal processing, multimedia and storage systems. Tata Elxsi's engineering design services business holds a strong potential for sizeable growth in the coming years, with incremental technology spending in the industry like automotive styling, consumer products and packaging design of FMCG goods. The visual computing lab division of Tata Elxsi is focused on providing world-class, quality animation (2D & 3D), special effects, and gaming services to customers worldwide. This division has already done some great projects in the domestic market including movies like Bunty aur Babli, Jodha Akbar, Salaam Namaste, Rang De Basanti. The company has also done some big projects in Hollywood such as XXX2 and Into the Blue.

In the Telecom segment, TEL works with telecom network manufacturers and phone companies in the wireline, wireless as well as wireless-broadband space. Tata Elxsi develops applications and software components that are built into telecom infrastructure. The company develops solutions value-added services such as MMS and Mobile TV to be integrated to mobile phones. Wimax is another focus area for the company and has deal wins in the US in this segment. All these factors represent strong opportunities for Tata Elxsi, which it is well placed to tap, thanks to its existing working relationships in the design engineering space such as Tensilica, ARM, Altera and Xilinx

TEL has reported a top-line CAGR of more than 16% since past nine years. PAT has grown at a CAGR of nearly 31% since FY2000. The company was able to maintain its top-line in the fledging market in FY2009 and also delivered a 10% growth in bottom-line over FY08 PAT. For the year ended March 2009, Tata Elxsi reported 4% growth in the net sales at Rs 418.6 cr. and operating profit grew 6% at Rs 81.41 cr. The PAT was up10.5% at Rs 58.1 cr.. On a equity of 31.14 cr (Promoters' stake- 44%) the EPS stood at Rs 18.65 and the dividend declared was 70%. For the Q1 ended June 2009, TEL posted net profit of Rs 7.21 cr (up 1.4%) on net sales of Rs 90.47 cr.(down 6.5%) cr.. Due to cyclical nature of TEL's business, Q1 is the weakest and the company can be expected to post moderate growth in top line and bottom line for FY10. At the current price of Rs 175, the stock trades at a PE of 10.3 times FY09 earnings (Rs 16.9) and at 8.7 times FY10 earnings (Rs 20). At CMP of Rs 175, the TEL stock is available at a dividend yield of 4%.

Going forward, TEL is looking to enter the defence market where it sees significant growth opportunity. The defence market is the least affected by the downturn and there are large budgetary allocation and spends. TEL has already been engaging with overseas defence companies in areas such as security, surveillance and communications. The security-related deals include functions such as image capturing using radar or satellite and processing them to gain intelligence. In the communication space, projects include setting-up WiMax networks for secure communications. Research firm Frost & Sullivan estimates the Indian defence market to touch $36 billion by 2013. Strong presence in the product design and engineering segment, emerging opportunities in developing full-length animation films, which Tata Elxsi appears well placed to tap, and an expanding presence in lucrative markets may drive growth for the company. The skill-intensive nature of its business sets its apart from other software companies and deserves better valuation. In another important development, at the Board Meeting held on September 07, 2009, Mr. S. Ramadorai was appointed as Chairman of the Company. 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)