Stock Idea: State Bank of India (SBI)

State Bank of India (SBI), despite the trying times, has posted a good set of results for the first half ended 30th September 2009. NII grew during H1FY10, grew 3.51% and this was driven mainly by interest on advances but it was muted due to fall in credit deposit ratio. Fee income grew 51.55% and operating income rose 18.03%.
What really helped the performance has been the reduction in the proportion of high-cost bulk deposits, which came down from 16.8% a year ago to 3.6%. Another noteworthy feature is that though PLR, since Sept 08’ has come down by 200 basis till Sep 09’, the yield on advances has fallen by only 29 basis points. This means that the bank has lesser sub-PLR lending.
Advances for HIFY10 grew 16%and deposits grew 25%. Gross NPA was at 2.99% and net NPA was at 1.73%. Interestingly, market share of SBI in advances rose YoY to 16.58% from 15.97%. Its advances to corporates grew 14%, that to SME rose 21%, agri loans grew 21% and home loans showed a healthy and steady rise at 23%. It remains numero uno in the total home loan segment in India.
After launching of SBI Happy Home Loan scheme, monthly average number of loans sanctioned increased from 14,400 in Feb 09 to 22,000 in Sept 09. In H1 FY10 disbursements under Happy Home Loans scheme is Rs 13,290 crore, which account for less than 2.3% of the overall loan book.
Education loans rose 42% and auto loans rose 44%. Market share in Auto loans is around 15% and SBI is the largest player in the industry.
It’s provisioning as at 30th Sept 09’ stood at 42.87% which is lower than 45.15% it had at the end of 30th June 2009. Last month, RBI increased the provision cover to 70% within a year and this means, SBI will have to hike its provisioning, putting pressure on the bottomline.
The good thing going for SBI is the proposed stake sale by the Govt from current 59% to 51%. This will rake in SBI over Rs.12,000 crore. Insurance companies have a 11.23% stake while the FII holding, as at September 30, stood at 9.87%.

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

Stock Idea: Allahabad Bank

This bank has been consistently posting a good performance and its results for the second quarter ended 30th September 2009 has been one of its best. Non-Interest Income grew 208 % on a YOY and Net Interest Income grew 22.23 %. Total Business of the Bank rose 18.14% on a YoY at Rs.148103 crore.
Deposits of the Bank went up by 18.55% to Rs. 87309 crore. Gross NPA to Gross Advances further declined to 1.78 % as at September 2009 from 1.93 % on a YoY while Net NPA to Net Advances ratio declined from 0.85% to 0.35 %.
Operating Profit rose 107% at Rs.649.84 crore. Net Profit of the Bank was at Rs. 333.59 crore as against Rs. 41.68 crore in the corresponding period last year recording a growth of700.36%.
Net NPA reduced to 0.35 %. It sustained its Provision coverage Ratio at 79.52 % and Capital Adequacy Ratio was at 14.90 % from 11.46% and this is much more than the stipulated norm of 9%. EPS for the quarter was at Rs.7.47 and book value increased to Rs. 145.19 from Rs.119.79 as on 30.09.08.
During the quarter it opened 6 more branches, taking the total number of branches to 2284.
What really helped the bank post such a stupendous performance despite the circumstances was its focus on high yielding advances and low cost deposits. It paid attention to the improvement of the bottomline instead of concentrating just on the overall balance sheet. The bank is offering a special rebate on its various retail loan products till December 31 and this being targeted at mainly the affordable housing loan sector is expected to add on to the bank’s robust performance. It plans to increase its retail business to 30% this fiscal and is planning to open 26 centralised retail boutiques in major cities across the country.
Stay invested as the Bank is expected to end the current fiscal on a high note.
Source: Internet (www.premiuminvestments.in by S P Tulsian)

Intraday Trading Calls for 10th December

Indian Stock Market may open negative but recovery expected from lower levels and a flat trading exptected after mid session.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
APTECH	Buy Above	188.65	194.10	200.00
	Sell Below	186.55	182.35	178.00
ATLANTA	Buy Above	160.75	165.20	170.00
	Sell Below	159.05	155.60	151.00
SONATA SOFT	Buy Above	45.25	47.50	50.00
	Sell Below	44.30	42.15	40.00
KPIT CUMMINS	Buy Above	132.45	135.50	139.00
	Sell Below	130.40	126.70	123.00
GODAWARI POWER	Buy Above	162.70	167.25	172.00
	Sell Below	160.10	156.40	152.00
GDL	Buy Above	139.50	143.75	148.00
	Sell Below	137.45	133.20	128.00
MAHINDRA SATYAM	Buy Above	103.60	107.80	112.00
	Sell Below	101.50	98.35	95.00

GOOD LUCK

Intraday Trading Calls for 09th December

Indian Stock Market may open negative but recovery expected from lower levels and a flat trading exptected after mid session.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ESSAR OIL	Buy Above	144.65	148.10	152.00
	Sell Below	142.35	138.25	135.00
CHENNAI PETRO	Buy Above	227.10	232.45	238.00
	Sell Below	224.20	220.30	215.00
ROLTA INDIA	Buy Above	183.25	187.60	192.00
	Sell Below	181.05	177.55	173.00
VGUARD INDS.	Buy Above	84.20	87.45	91.00
	Sell Below	82.40	79.35	76.00
UNITED PHOSPHO	Buy Above	167.10	171.40	176.00
	Sell Below	165.05	161.70	158.00
IOC	Buy Above	320.10	327.60	335.00
	Sell Below	315.40	308.70	300.00
ATLANTA	Buy Above	163.80	169.10	174.00
	Sell Below	161.70	158.20	154.00

GOOD LUCK

Stock Idea: ABB

The stock hit a high of Rs.744.50 yesterday on news that the company had bagged a Rs.506 crore order from Bangalore Metro. And this seems a far cry from the performance it had posted for third quarter ended 30th September 2009. YoY, net revenue fell 5.6% at Rs.1468.93 crore. Net profit was at Rs.83. 06 crore as against Rs.104.79 crore in Q3 2008.
The company booked orders worth Rs.1893.30 crore in Q3 and this is just a 0.3% rise over Q3 2008. And its cumulative order intake for nine months ending September 2009 was at Rs.6308 crore, down 7.1%. Order backlog increased from Rs.7105.10 crore in Q3 2008 to Rs.8023.30 crore in Q3 2009 which is a 13% rise. The order book is static this quarter which is better than the decline it has shown in the earlier quarter. It does mean that though things do look cautious it is surely bottoming out. Surely, this is one company which is showing benefits of the Govt spend on infra development and stimulus packages.
Yet it is not completely out of the woods. The lower profit margins continue to indicate pressure. OPM for the quarter was at 9.41% as against 11.23% in previous Q3. NPM was 5.65% v/s 6.73% in Q3 2008. But this NPM is also the highest it has had thro entire 2009.
Q4 will continue to show some pressure but it would be better than the previous quarters. It will end 2009 on a muted note but Q4 will help it bolster the numbers for the year end. At the current price, it seems fully priced, best to book profits and re-enter on decline.

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

Intraday Trading Calls for 08th December

Indian Stock Market may open flat to negative but recovery expected from lower levels from mid-session.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
ESSAR OIL	Buy Above	143.25	147.45	152.00
	Sell Below	141.35	138.25	135.00
CUMMINS INDIA	Buy Above	410.10	418.60	430.00
	Sell Below	405.20	396.45	388.00
ACCENTIA TECH	Buy Above	132.50	136.75	142.00
	Sell Below	130.40	126.55	122.00
ASTRA MICRO	Buy Above	71.20	74.30	78.00
	Sell Below	69.70	67.45	65.00
SELAN EXPLO	Buy Above	322.75	330.15	338.00
	Sell Below	318.40	310.25	300.00
IOC	Buy Above	316.65	322.70	330.00
	Sell Below	313.20	307.55	300.00
ALEMBIC LTD	Buy Above	49.25	52.35	55.00
	Sell Below	47.60	45.35	43.00

Short to Medium Term Delivery Buy:
Buy CEAT Ltd. (500878) CMP Rs. 142/- Short to Med Term Target Rs. 195/-.
GOOD LUCK

Stock Idea: Blue Star Infotech Ltd.

BLUE STAR INFOTECH LTD (Rs 96)
(BSE Code- 532346 NSE Code- BLUESTINFO)
(P/E- 6.5, Market Cap- 96 cr. Dividend yield-5.2%)
Blue Star Infotech (BSIL) is a global provider of Product Development services, ERP solutions, Travel Technology solutions and Testing services. Part of the US$600M Blue Star Group, Blue Star Infotech provides profit-enhancing solutions to enterprises and product companies. With operations in North America, Europe, UK, Japan and India, Blue Star Infotech delivers high-performance technology-based services by adopting a partnering approach with its clients. Blue Star Infotech is a Microsoft Gold Partner and an Oracle Certified Partner. In December 2008, Blue Star Infotech completed 25 years of operations. Blue Star Infotech enjoys long-term relationships with most of its customers. It has a distinguished list of customers across different industries such as Manufacturing, Financial Services, Travel, Retail, Technology, Life Sciences and Engineering. Headquartered in Mumbai, India, BSIL has seven software development centers in Mumbai and Bangalore and serves its global clientele through offices in Santa Clara (CA) and Jersey City (NJ) in North America, London in UK, Helsinki in Finland and Tokyo in Japan. The Company also has business associates in USA and Europe
BSIL enjoys a 24-year old relationship with Hewlett-Packard, a Fortune 100 company and has been certified as a Hewlett-Packard's Developer and Solution Partner Program member. Some of the other major clients of the co. include names such as Hitachi Medical Corp., 3M, York Intl. Apart from these, BSIL has worked with organizations such as McDonald’s, Expedia.com,, Warner Brothers, NEC, European Parliament, HLL, United Breweries, Cipla, Raymond, amongst others
For the Q1 ended June 2009, BSIL has posted a 65% rise in net profit to Rs 2.5 cr. on net sales of Rs 33.81 cr. on consolidated basis. For the Q2 ended Sept. 2009, BSIL posted net profit of Rs 4.19 cr. (up 67% q-o-q) on net sales of Rs 33.78 cr. on consolidated basis. The half yearly EPS stood at Rs 6.70. For the year ended March 31, 2009, Consolidated Revenue stood at Rs. 155.03 cr., representing an increase of 8% over Rs. 143.56 cr. registered in FY08. Consolidated Net Profit for the year was Rs. 15.55 cr., representing a significant growth of 217% y-o-y. On a equity of 10 cr.(Promoters’stake-55.38%), the EPS stood at Rs 15.55 and the dividend declared was 50% (Rs 5 per share). The Company added 47 new customers during 2008-09 and initiated multi-year engagements with four leading companies from UK; a multi-billion dollar engineering company in US and a leading BPO service provider and one of the largest theatre chains in India. Based on current trends and industry outlook, BSIL hopes to improve its performance in the coming year. With its current focus on strengthening and increasing its sales and marketing efforts, it is well-positioned to capitalize on the expected turnaround.
BSIL’s financial position is strong with zero debt and Rs 23 cr. in cash/cash equivalents as on March 31, 2009. The steady flow of revenues from HP coupled with the increasing contribution of business from key clients provides significantly visibility in the company’s future revenues. At current level of Rs 96, BSIL trades at 6.5 times its FY09 earnings and looks attractive for the medium-long term. The BSIL share at current levels also offers an attractive dividend yield of 5.2%. Investors can start accumulating the stock at current levels and add more on declines for decent returns of 40%-45% over the next 6-8 months.

Source: Internet (Valuenotes by Sanjay Chhabria)