IPO Talk: Religare Enterprises

Religare Enterprises is entering the capital market on 29th October 07 with a public issue of 75.76 lakh equity shares of Rs.10 each, in the band of Rs.160 to Rs.185 per share. The proposed issue is 10% of the expanded equity of Rs.75.76 crores.

The company is 100% holding company for various subsidiaries engaged in stock broking, personal finance, commodities broking, insurance broking, wealth management services, venture capital, investment banking and art initiatives. Reliance Insurance Holding Co. Ltd., an insurance holding company, is 75% subsidiary of the company. The companies are all in place with strong organization network and capable to achieve scalability, over a period of time. Senior level executives and personnel have been recruited by various subsidiaries and business of all these subsidiaries would witness a sharp increase in time to come.

For FY07, on consolidated basis, total income of the company was placed at Rs.320.12 crores with PBT of Rs.47.60 crores and PAT of Rs.25.02 crores resulting in an EPS of Rs.3.67, on pre-issue equity of Rs.68.19 crroes. For 6 months ending 30-09-07, the total income was placed at Rs.307.96 crores with PBT of Rs.57.64 crores and PAT of Rs.36.73 crores, resulting in an annualized EPS of Rs.10.80. This means, present issue is being made at a PE multiple of 17, based on FY 08 earnings, and at the upper band of Rs.185 per share.

Presently, the company with its subsidiaries have 1,217 business locations managed by the company and its subsidiaries as also Business Associates in 392 cities and towns in India. The company proposes to establish 100 more branches for which Rs.26.50 crores has been allocated. Rs.50 crores has been allocated for funding retail finance business. Rs.60.60 crores has been earmarked for lending business and this amount has been sourced from pre-IPO placement, having made at Rs.160 per share.

The post issue equity of the company will be at Rs.75.76 crores and at Rs.185 per share, it has a market capitalization of close to Rs.1,400 crores which is very low, thus having huge scope of expansion. Also, in view of low-base and recent creation of organization for various subsidiaries, CAGR of atleast 40% for the next three years in bottomline is visible. This kind of performance would be well received by the market, post listing.

The issue is very attractively priced and investment is advised at the upper band of Rs.185 per share. This is probably the most economical broking stock which can give handsome returns to the short term and medium term investors as also good listing gains.

Source:sptulsian.com

*****Latest Grey Market Premium: Rs. 250-270/-

IPO Talk: Mundra Port & SEZ

Mundra Port and Special Economic Zone is entering the capital market on 1st November, 07 with a public issue of 402.50 lakh equity shares of Rs.10 each, in the band of Rs.400 to Rs.440 per share.

The company is the developer and operator of Mundra Port, which has a deep water draft ranging from approx. 15 meters to 32 meters in depth, at a distance of about 15 km. from shore, where it is used to unload crude, a big business potential. The port is principally engaged in providing port services for bulk cargo, container cargo, crude oil cargo, and value added port services including railway services. The commercial operations of the port has commenced from October 2001. Total cargo volume at Mundra Port increased from 11.7 million MT in FY 06 to 19.8 million MT in FY 07.

The concession agreement for the port is 30 years, which would expire on 17-02-2031, and 3,404 acres of land has been permitted to get used for the port alongwith a right to use the foreshore land and waterfront, and on 17-02-2031 the port shall be transferred to Gujarat Maritime Board.

The company presently has 15,665 acres of land available and 16,688 acres of additional land are at various stage of being transferred to the company, thus aggregating 32,353 acres for Port and SEZ.

The present equity of the company is Rs.360.04 crores which will increase to Rs.400.68 crores post IPO, of which, promoters stake would be 81.30% while 10% is being issued to the public, while about 8.7% is held by private equity investors like ICICI Bank, IDFC, Govt. of Singapore, Indivest PTE and 3i Venicle (Mauritius) Ltd.

For FY 07, the income of the company was placed at Rs.596 crores with PBT of Rs.175 crores and PAT of Rs.187 crores, due to deferred tax credit of Rs.13.32 crores. The total debt of the company as at Rs.30-06-07 was at Rs.1,399 crores while net worth was at Rs.764 crores.

If we calculate the enterprise value, post IPO, at the upper band of Rs.440 per share, the same works out at Rs.17,600 crores and adding debt of Rs.1,400 crores it works out to Rs.19,000 crores, which is very low compared to the size and operations of the Port and SEZ.

The company now has estimated a requirement of Rs.3,160 crores, which is mainly being Rs.700 crores for SEZ, Rs.2,000 crores for coal terminal project, Rs.255 crores in Adani Petronet (Dahej) Port, Rs.49 crores for Adani Logistic and Rs.156 crores for Inland Conware P. Ltd. This is being financed by debt of Rs.1,200 crores, internal accruals of Rs.525 crores and Rs.1,435 crores from proposed IPO. At the upper band, issue would mobilize Rs.1,770 crores which would take care of this requirement.

The noteworthy feature of the project is that such a big port is already operational, with virtually, entire land for port and SEZ having acquired. The potential of revenue generation is huge in view of all weather nature as also huge cargo inflow of coal mainly for Tata Power (4,000 MW) Ultra Mega Power Project and Adani Power, 2,640 MW, project. The crude cargo would also give huge revenue to the port. SEZ income would be added to the revenue and profitability of the company, in the coming years. However, concession period of 30 years, expiring in 2031 is considered to be of shorter duration.

As the infrastructure projects have huge potential and this being an operational Port, it represents an excellent investment bet and is recommended for investment even at the upper band of Rs.440 per share.

Source:sptulsian.com

*****Latest Grey Market Premium : 300-320

Markets Today

The markets ended marginally in green off day's high ahead of the Fed meet announcement. Selective buying was seen in power, bank, real estate stocks. Action was seen in the midcap space as the index is up nearly 1% and the smallcap index is giving it good company up 1.5%.
Market is eyeing Fed's crucial decision on rate cut, anayst are expecting a 25 bps rate cut.
On the results front, Bharti's results beat street expectations as non mobile business has helped in the outperformance. However HUL came out with weak set of numbers.
Realty majors Unitech and DLF are trading in green on the back of good set of numbers
Reliance Energy, Ranbaxy, NTPC, Sterlite Ind, Bharti, Reliance Communication, Reliance, Tata Steel, SBI were among the top gainers on the indices.
Top losers on the Sensex are HUL, Grasim, BHEL, Tata Motors, TCS , HDFC Bank and Wipro.
Sensex was up 54.48 points or 0.28% at 19837.99, and the Nifty up 31.90 points or 0.54% at 5900.65.
About 1537 shares have advanced, 1435 shares declined, and 87 shares are unchanged.
The BSE Midcap Index ended at 8,135.21 up 1.1%.
The BSE Smallcap Index ended at 9,796.86 up 1.6%.
The BSE Bankex was up 1% at 10,655.33. Bank of Baroda, PNB, HDFC Bank, Canara Bank, ICICI Bank moved upwards.
The BSE Capital Goods Index was down 1% at 19,795.32. Reliance Infra, Kalpataru Power, Carborundum, Alfa Laval, Greaves Cotton closed lower.
The BSE Auto Index closed at 5,507.17 up 0.5%. Exide Industrie, MRF, Bharat Forge, Mah and Mah, Cummins closed higher.
The BSE Metal Index closed at 17,884.93 up 3.4%. Jindal Steel, Jindal Saw, Hind Zinc, JindalStainless, Sesa Goa closed higher.
The BSE FMCG Index closed down 1% at 2,126.59. HUL, United Spirits, United Brewerie, Godrej Consumer closed lower.
BSE Oil and Gas Index closed at 11,658.48 up 1.2%. Reliance Petro, Petronet LNG, Reliance Natura, IOC, ONGC, BPCL ended higher.
The BSE IT Index was at 4,618.72 down 0.6%. Patni Computer, Tech Mahindra, TCS, Wipro closed lower.
The NSE cash turnover was at Rs 22652.01 crore and the NSE F&O turnover was at Rs 71090.73 crore. The BSE cash turnover was Rs 10018.18 crore. Total market wide turnover was at Rs 103760.92 crore.
Source:moneycontrol.com

Intraday Calls for 31st October

Market may open nagetive and see some profit booking but later recovery expected.

Buy for Intraday: (Buy at lower levels)

Exide Industries (67)
Nagarjuna Fert. (60)
Essar Oil (56)
JP Hydro (84)
REL (1795)
Ansal Properties & Infra (244)
ABB Ltd. (1552)
Poly Medicure (135)
Ruchi Soya (90)
Apar Industries (253)
Lok Housing (196)

Keep an eye on small psu banking stocks like Vijaya Bank, Dena Bank, UCO Bank, buy at dip for short term gain.

Good Luck

Markets Today

The markets ended in red after a sharp run up in the past few sessions. It was an important day as RBI announced the credit policy. According to experts, markets will be unaffected by the the new credit policy as the credit policy was largely inline with street expectations. In the new credit policy, repo rate and reverse repo is left unchanged and CRR has been hiked by 50 bps it has maintained the GDP forecast at 8.5%. The rupee has appreciated at 39.38 against the dollar.
CRR hike is largely a liquidity management tool than used for signalling any interest rate changes. The policy has largely managed the status quo, say experts.
RPL, Sterlite Ind, BHEL and Bharti Airtel were trading strong. However, trading weak were PNB, M&M, TCS and Maruti Suzuki.
Sensex was down 194.16 points or 0.97% at 19783.51, and the Nifty down 37.15 points or 0.63% at 5868.75.
About 1217 shares have advanced, 1760 shares declined, and 81 shares are unchanged.
The BSE Midcap Index ended at 8,048.07 down 0.4%.
The BSE Smallcap Index ended at 9,644.44 down 0.6%.
The BSE Bankex was down 1% at 10,550.09. PNB, Kotak Mahindra, SBI, IOB, ICICI Bank, Andhra Bank moved downwards.
The BSE Capital Goods Index was up 1% at 20,006.57. Punj Lloyd, AIA Engineering, Areva T&D, ABB, BHEL closed lower.
The BSE Auto Index closed at 5,479.89 down 3%. Maruti Suzuki, Mah and Mah, Tata Motors, Tube Investment, Punj Tractors closed lower.
The BSE Metal Index closed at 17,302.22 up 1%. Sesa Goa, Jindal Steel, Sterlite Ind, Hindalco, Hind Zinc closed lower.
The BSE FMCG Index closed at 2,146.87 down 1%. Britannia, ITC, P&G, Tata Tea,HUL closed lower
BSE Oil and Gas Index closed at 11,526.30 down 1%. BPCL, Reliance, ONGC ended in red.
The BSE IT Index was down 0.6% at 4,647.53. TCS, Iflex, Satyam, Infy ended in red.
The NSE cash turnover was at Rs 24611.60 crore and the NSE F&O turnover was at Rs 89601.31 crore. The BSE cash turnover was Rs 10948.83 crore. Total market wide turnover was at Rs 125161.74 crore.
Source:moneycontrol.com

Intraday Calls for 30th October

Market will continue its bull run and today nifty can touch 6000. If no change in CRR & Repo or cut in rates then market will zooooom to new highs.

Buy for Intraday:

Dewan Housing (102) Target 108-110 SL 100
GIC Housing (64.75) Target 68-70 SL 63
Torrent Power (162) Target 165-168 SL 160
Bombay Dyeing (743) Target 775-790 SL 735
Bharat Forge (352) Target 360-365 SL 348
TTML (47.5) Target 50 SL 46.5
Jindal Saw (739) Target 760-775 SL 730
Can Fin Homes (71) Target 75+ SL 70
PSL (452) Target 465 SL 446

Keep an eye on all banking stocks like Syndicate Bank, Andhra Bank, BOB, Yes Bank etc. If no change of cut in rates then banking stocks will zoooooooom.

Others: Gallant Metal, Paramount Communication, DCW, BHEL, L&T, NIIT Ltd.

Good Luck

Markets Today: Sensex Hits 20000

The bulls run the Indian markets have achieved another milestone with Sensex hitting the 20,000 mark. It was a solid 700 points rally on the Sensex and Nifty hit 5,900 levels scoring over a double century. It was third biggest single day absolute point fot the Sensex. Strength was seen coming from all quarters.
Cues from Asia and rest of the equity markets were robust which has helped in such a rally.Asia has ended in green with gains of 1%-3%. Hefty 14 points premium is seen in Nifty futures.
Top 6 stocks contributed to 90% to the 1000 point rally from 19,000 to 20,000.
L&T and ICICI Bank top contributors with 50% contribution of last 1000 points rally.
Large caps are the clear outperformers. L&T, BHEL, Reliance Petro, Siemens, HDFC, HDFC Bank were among the star performers.
Broader markets also participated in the uptrend both the midcap and smallcap indices each up nearly 2%.
On the corporate front, Maruti came out with numbers largely inline with street expectations. Capital goods, banking, metal and realty stocks were in focus. Market breadth is positive with impressive volume. All the key indices are trading in green. BSE capital good index has raced ahead and was up 7% followed by BSE metal, oil & gas and bankex each up over 3%.
Sensex was up 734.50 points or 3.82% at 19977.67, and the Nifty up 203.60 points or 3.57% at 5905.90.
About 1700 shares have advanced, 1288 shares declined, and 70 shares are unchanged.
L&T was up 10%, BHEL is up 7%, ONGC up 7%, HDFC Bank up 7%, RPL up 9%, Maruti up 5% were among the top performers on the indices.
The BSE Mid Cap Index closed at 8,082.54up 2%.
The BSE Smallcap Index ended at 9,705.20 up 1.6%.
BSE Metal Index was up 3%; Jindal Saw, Jindal Steel, Mah Seamless, SAIL, Sesa Goa, NALCO.
BSE Oil & Gas Index was up 5%; Reliance Natura, Reliance Petro, ONGC, Reliance, GAIL.
The BSE FMCG Index closed at 2,161.67 up 2%. United Spirits, Marico, Nestle, Godrej Consumer, Britannia, Tata Tea ended higher.
The BSE Capital Goods Index was up 7% at 19,847.66. Siemens, L&T,Alfa Laval, BHEL, Areva T&D, Punj Lloyd, Thermax were among top gainers.
The BSE Auto Index closed at 5,656.43 up 1%. MRF, Amtek Auto, Bharat Forge, Escorts, Tube Investment, Apollo Tyres were among the gainers.
The BSE IT Index closed at 4,674.65 up 0.8%. Mphasis, Wipro, Satyam, Financial Tech,Tech Mahindra ended higher.
The BSE Bankex was up 4% at 10,649.71. HDFC Bank, ICICI Bank,Yes Bank, PNB, Bank of India, Allahabad Bank closed higher. The NSE cash turnover was at Rs 21775.4 crore and the NSE F&O turnover was at Rs 69537.38 crore. The BSE cash turnover was Rs 8883.17 crore. Total market wide turnover was at Rs 100195.95 crore.
Source:moneycontrol.com