Stock Idea: Allahabad Bank

Established in 1865, it is one of the oldest banks in India and though one of the profitable banks too, the first quarter ended 30th June 2008 financial performance of the company has not been too good. Its net profit for the period dropped by around 53%, YoY and this was mainly on account of the provisioning made for Rs 264.08 crore owing to the increase in yield of government securities (G-Sec). The yields went up due to inflation and hence it affected the margins. Apart from this major glitch, the rest of the performance was up to the mark.
Total income increased by 20.48 per cent at Rs (Rs 1,535.10 crore). The total business stood at Rs 1, 23,451 crore, up from Rs 1,03, 378 crore. Operating profit increased by 6.18% at Rs.306.73 crore.
Deposits grew by 16.53% at Rs.73,207 crore while advances went up by 23.87% at Rs.50,244 crore. Net NPA was at 0.75% as against 0.76% in Q1FY08. The total investment portfolio of the bank was at Rs 24,974 crore, of which 58% was in the Held-to-Maturity category while the rest was in Available for Sale category.
The Bank has squashed all rumours and stated categorically that it has no plans to raise capital in the immediate future. Though the Bank has the Boards approval to raise Rs.300 crore, it feels that the current market situation is not right and would prefer to wait out till things stabilize. It is yet to receive the nod from the Government for its proposed rights issue.
The Bank opened 12 more branches during the quarter taking total number of branches to 2165 (excluding 1 Foreign Branch). The bank plans to open a branch in Bangladesh and convert its representative office in China into a full-fledged branch. On the domestic front, it has received Reserve Bank of India’s approval to open 113 branches this year and has also applied to RBI for 180 more branches.
Currently quoted at Rs.64, it is closer to its low of Rs.53 than to its high of Rs.143. Stay invested.

Source: sptulsian.com

Intraday Trading Calls for 7th August

Indian Stock Market may open flat to nagetive. A flat to positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

GMR INFRA (101.50)
Buy Above 103.20 Target 106.60, 110.00
Sell Below 100.40 Target 96.50, 93.05
SUZLON ENERGY (241)
Buy Above 243.50 Target 247.75, 252.05
Sell Below 239.40 Target 235.05, 231.00
INDIA CEMENT (162)
Buy Above 163.55 Target 166.45, 170.00
Sell Below 160.50 Target 157.05, 153.00
MOSER BAER (97)
Buy Above 98.20 Target 101.20, 104.55
Sell Below 95.80 Target 93.05, 90.00
VOLTAS (138)
Buy Above 139.40 Target 143.05, 147.00
Sell Below 136.50 Target 132.45, 128.00
MERCATOR LINES (93.50)
Buy Above 94.70 Target 98.20, 102.00
Sell Below 92.10 Target 89.05, 86.00

Others for Intraday: PRITHVI INFO, 3i Infotech, UNITECH, INDIABULLS REALEST, HDIL, DLF.

Med Term Delivery Buy Prithvi Information Solutions 532675 (147) Target 240.
Short Term Delivery Buy Prism Cement 500338 (37) Target 50+

Good Luck

Intraday Trading Calls for 06th August

Indian Stock Market may open gap up as all global markets trading higher and US Markets closed higher yesterday and Crude Oil at $118. A strong rally and good positive closing expected today.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (122)

Buy Above 123.20 Target 126.60, 130.00

Sell Below 120.40 Target 116.50, 113.05

GUJARAT NRE COKE (104)

Buy Above 105.30 Target 108.75, 113.05

Sell Below 102.70 Target 98.75, 95.00

BANK OF BARODA (298)

Buy Above 300.90 Target 306.65, 314.00

Sell Below 295.70 Target 290.05, 285.35

YES BANK (138)

Buy Above 140.10 Target 143.95, 148.00

Sell Below 136.60 Target 133.35, 129.50

JAI BALAJI INDUSTRIES (308)

Buy Above 310.90 Target 316.55, 324.00

Sell Below 305.40 Target 300.10, 294.00

APTECH LTD. (210)

Buy Above 212.25 Target 216.65, 221.00

Sell Below 208.10 Target 204.45, 200.00

Others for Intraday: BONGAIGAON REFINERY, HPCL, BPCL, IOC, ESSAR OIL, VOLTAS.

Short Term Delivery Buy Mercator Lines 526235 (93) Target 115+.

Short Term Delivery Buy Prism Cement (36) Target 50+
Good Luck

Intraday Trading Calls for 05th August

Indian Stock Market may open flat to positive. A small rally and good positive closing expected today as crude oil goes down to $120.

Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):

ADHUNIK METALIKS (121)
Buy Above 122.55 Target 125.60, 129.20
Sell Below 119.80 Target 116.50, 113.05
GUJARAT NRE COKE (110)
Buy Above 111.20 Target 114.05, 117.55
Sell Below 109.20 Target 106.55, 103.60
PRAJ INDUSTRIES (188)
Buy Above 189.90 Target 193.75, 198.00
Sell Below 186.20 Target 183.05, 179.35
GMR INFRA (102)
Buy Above 103.10 Target 106.75, 110.00
Sell Below 100.00 Target 97.35, 94.50
IBREALEST (304)
Buy Above 307.30 Target 312.55, 320.00
Sell Below 301.40 Target 296.45, 290.00
NAV BHARAT VENTURE (270)
Buy Above 272.50 Target 276.65, 281.00
Sell Below 268.10 Target 264.05, 260.00

Others for Intraday: HPCL, BPCL, IOC, ESSAR OIL, VOLTAS.

Short Term Delivery Buy Mercator Lines 526235 (91) Target 115+.

Good Luck

Investment Pick: Kamanwala Housing

Investment Analyst, Ashish Chugh is of the view that Kamanwala Housing is looking undervalued.
Chugh told CNBC-TV18, "Kamanwala Housing Construction is a real estate company located in Bombay; it is doing most of the projects in Bombay only. This company was not doing well till about the year 2006. The company saw a turnaround in performance in financial year 2006-07, wherein the revenues of the company grew six fold from about Rs 12 crore to Rs 80 crore to Rs 85 crore and the PAT increased from about Rs 50 lakh to about Rs 12.5 crore. That was the starting point for this company and from there on, this company has maintained its performance and has given good performance QoQ."
He further added, "This Company is doing projects mainly in Bombay. Some of the projects which it is doing in Bombay are, one is the commercial project called Pinnacle corporate park which it is doing at BKC ( Bandra Kurla Complex), this is about 75,000 sq. ft and besides that, this company is doing a residential project in Malad (West) having a total saleable area of about 4 lakh sq. ft and in the first phase, it is doing about 2 lakh sq ft. It is also doing a residential project in Santacruz (West) which is about 60,000 sq. ft. It has also bought a building called Vallabh Terraces in Opera House in Bombay and it is doing re-development of this building and will probably sell this building after the re-development. It is also doing a commercial and residential project in Versova in Bombay and also developing the famous Filmistan Studio into a residential cum commercial project.”
“It has about 8-9 lakh sq. ft of area from Bombay alone and besides that the company has bought land in New Bombay also. It has bought about 10,000 meters of land at a total consideration of about Rs 15 crore. It is going to develop a residential and commercial project there also. To de risk the business model, it has diversified to Hyderabad also where in it has taken about 20% stake in a project which is spread over an area of about 35 acres."
"For FY08, this company has achieved the sales of Rs 96 crore. The PAT is of about Rs 24.5 crore. It’s got a small equity of about Rs 6.4 crore which translates into an EPS of Rs 40 for FY07-08. In the first quarter also, the performance has been maintained there. The topline is increased about 92% to about Rs 33 crore and the bottom-line is up by about 37% to Rs 4.25 crore. You may say that when the real estate market is bad and most analysts are predicting that the real estate prices might correct in Bombay. Why this stock, the reason this is trading at very reasonable valuations, it is going at a PE ratio of less than 2.5."
"The promoters have been increasing their stake for the past few quarters; they have increased their stake from about 40% to about 45% through the preferential route. The one which gives about confidence of sustainability of earnings is that the company has recently declared a bonus in 1:1 ratio. Declaring a bonus in an industry which most people perceive not doing well that only gives and talks about the confidence which the promoters have when talking about the sustainability of the earnings in future, so this stock is trading at a reasonable valuation and it is available cum bonus and dividend which is of 25%. Also, the promoters increasing their stake at a market cap of Rs 60 crore. This stock looks undervalued."

Source: moneycontrol.com

Stock Idea: Gujarat NRE Coke

With coal prices going through the roof, it was a foregone conclusion that Gujarat NRE Coke would post a superlative performance for first quarter ended 30th June 2008, it was only a question of “how superlative”.
YoY, exuberant would be more like it. On a whopping 154% rise in net sales, the company’s EBIDTA rose over two times, the PBT of the company rose 2.26 times and PAT was up by a whopping 2.20 times at Rs.94.40 crore. But the margins indicate that there is some pressure. OPM was down from 42.10% to 34.68% and NPM was down from 28.76% to 25%.
QoQ, the performance was mixed. Though net sales was down marginally by 0.8%, it managed to reduce its operating costs by 14.38% and this helped the EBITDA which was up 23%. It reduced its interest outgo by 13% and depreciation rose 31%. PBT rose 28%. Its taxation for the quarter was down 22% and this further helped boost the net profit, which was up 47%. Unlike YoY, the QoQ margins showed an improvement. OPM was up from 27.85% and NPM from 16.87%, which is quite substantial.
The company currently manufactures one million tonne of coke from its three existing facilities in Gujarat and Karnataka. An additional 0.25 mt capacity is being commissioned at Dharwad, which is expected to go on stream by March 2009. It plans to set up a one million tonne coke manufacturing facility at Nellore in Andhra Pradesh, at a capex of Rs.450 crore, to be financed mostly from internal accruals and is expected to be commissioned by 2010. It has dropped its rights issue plan.
It has also lined up Rs.600 crore worth of power projects. It has installed 30 MW wind power capacity and installation of another 30 MW at Rs.170 crore is to be completed by September 2008. The company is also installing 60 MW waste heat recovery power plants at its coke plants, costing Rs.300 crore. Once all these go on stream, the total power generation capacity is expected to be 147.5 MW.
The company has also lined up investments tuning over $500 million (of which it has already invested $300 million) in developing its two coal mines in Australia, which is expected to take its total coal production capacity to 7 million tonnes by 2012-13. This investment is also being funded through internal accruals. Goes on to show, how much money the company managed to make due to soaring coal prices. And it’s gratifying to know that instead of sitting on these gains, it is ploughing back the gains and distributing to shareholders also. It has recommended a bonus issue in the ratio of 2 shares for every five held. This is the sixth bonus since 1995-96.
The average net realisation of the company has gone up from Rs 8,600 a tonne to Rs 19,100 a tonne during Q1. From $450 a tonne in April, spot coke prices reached $600 a tonne in June and is now ruling at $700. The company sells 60% of its production on spot basis.
Clearly, the prospect for coal remains highly bullish in the current fiscal too. One can consider buying this stock at every decline for good long term gains.

Source: Sptulsian.com

Stock Idea: Bank of Rajasthan

Total income of the bank, YoY, rose 25% at Rs.341.40 crore. Treasury operations were at Rs.116.46 crore as against Rs.97.91 crore in Q1FY08; Corporate or wholesale banking income was at Rs.126.92 crore while retail banking income was at Rs.92.26 crore. PBT was down 11% at Rs.37.76 crore. The bank managed to reduce its taxation by 44% and that helped the net profits, which was more or less flat at Rs.30.92 crore as against Rs.30.17 crore in Q1FY08.

Its capital adequacy was at 12.26% compared to 11.90% last Q1. Gross NPA was at 1.65%, down from 2.70% while net NPA was at 0.42% as against 0.62% in previous Q1.

The Bank is now well on its path to make a bigger presence in the Indian banking sector. It has converted all its branches online on a pan India basis and has emerged as one of the most technology driven private sector banks. The bank currently has a network of 469 branches and has applied to RBI for an additional 40 branches.

The bevy of activity in the bank, specially with so many FIIs picking up a stake in the bank indicates that many are stocking up their stake, in a run-up to the opening up of the banking sector to foreign investors in April 2009. Currently, this is one of the most profitable banks in the Indian banking sector, and it is little wonder then that most of the FIIs want to be prepared to hike their stake beyond 5% once they are presented with the opportunity.

Banking stocks might not be too good right now, but stay invested, as once April 09 comes, the entire dynamics of the banking industry will change.

Source: sptulsian.com