Stock Idea: Jaiprakash Associates Ltd

Jaiprakash Associates Ltd— BUY—220—INR
Sector — Construction (others)
Regd.Off.— S. K. Road, Greater Noida City, Lucknow, U.P. -201306
Listed — NSE, BSE.
Company overview—
Jaypee group is a well-diversified infrastructural industrial group of India that commenced its operations in 1972 as a partnership firm then known as Jaiprakash Associates. Three decades later with growth and diversification the group is now engaged in the businesses of Engineering and Construction, Cement, Private Hydropower, Expressways and Highways, Hospitality, Golf Resorts and Information Technology. With a professional management team and a competent technical cadre the group employs a total workforce of over 25000. Jaiprakash Associates Limited the flagship company of the Jaypee Group is leader in the construction of multi-purpose river valley and hydropower projects and has been involved in construction of major engineering projects for the last three decades. Jaiprakash Associates Limited the groups construction arm is the only company to have four modern ferrule workshops one each in Tala, Baglihar, Chamera and Vishnuprayag sites.
Products & Services—
Company is involved in the construction of multi-purpose river valley and hydropower projects and has been involved in construction of major engineering projects for the last 37 years, including complex hydro power / river valley projects, Expressways and Real Estate Development, etc. Company is involved into Design and engineering of works, Controlled earth / rock fill, Concrete manufacture and placement, Fabrication and erection of penstock liners and steel structures, Hydro-Mechanical equipment design, procurement and erection, Expressway Construction, Real Estate Development.
Company has completed several projects in India and abroad as an Engineering Procurement and Construction (EPC) contractor and possesses necessary experience and expertise to carry out such works in a time schedule. Company has acquired ample tunneling experience in the young Himalayan mountains on various projects inter alia, Dul Hasti (Jammu & Kashmir), Baspa-II (Himachal Pradesh), Vishnuprayag (Uttaranchal) and Tala (Bhutan) Hydroelectric Projects under complex conditions including extreme weather conditions, adverse geological conditions. It is simultaneously constructing nine concrete dams, one barrage and twelve powerhouses with a total generation capacity of over 8190 MW. Company owns a huge fleet of modern construction machinery which include ropeways, electronically controlled parallel cable way system, tower cranes, rotec conveyer system, tunnel boring machine, hydraulic jumbos, modern computerized concrete batch plants, ice making machines, in addition to a large complement of earthmoving machinery. Highly qualified professionals and competent technical persons supported by skilled operators and supervisors, Technicians, Skilled and Unskilled Workers form the backbone of the company. Company has been assigned "CR 1" grade by ICRA Ltd, indicating Very Strong Contract Execution Capacity with best prospects of timely completion of projects without cost overruns, etc.
Recent development—
Jaiprakash Associates has raised Rs 10 billion through issue of non-convertible debentures (NCDs) to Standard Chartered India. Company has also decided to raise low cost funds to the extent of Rs. 5 billion by way of private placement of unsecured rated commercial papers. It has also decided to disinvest / offer for sale upon 60 million equity shares out of 1.21 billion equity shares of Rs 10 each held by the company in Jaypee Infratech, a subsidiary of Jaiprakash Associates.
Valuation—
At current market price, stock is trading at 9.74 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy “Jaiprakash Associates Limited” with medium to long-term investment Horizon.
Source: Internet (Valuenotes by Abhishek Jain)

Intraday Trading Calls for 27th November

Indian Stock Market may open negaive but remains very volatile and a negative closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
BRFL	Buy Above	190.75	194.50	199.00
	Sell Below	189.25	185.45	181.00
IDFC	Buy Above	167.25	170.35	174.00
	Sell Below	165.15	162.40	158.00
APTECH	Buy Above	170.10	174.35	192.00
	Sell Below	168.40	164.20	160.00
GODREJ INDUSTRIES	Buy Above	206.50	211.10	216.00
	Sell Below	203.70	200.10	195.00
THINK SOFT	Buy Above	304.70	311.25	318.00
	Sell Below	301.05	295.45	290.00
CIPLA	Buy Above	319.20	325.10	330.00
	Sell Below	315.70	310.40	304.00
KPIT CUMMINS	Buy Above	114.65	118.75	122.00
	Sell Below	112.45	109.20	105.00

GOOD LUCK

Stock Idea: Jain Irrigation

This stock, typically comes to the fore only during the Budget. With the Govt always expected to give sops to the agriculture sector, this is one stock which has always been a big beneficiary. But looks like the poor monsoon and the recession in international markets have played on the sequential numbers, which are clearly under pressure.
Its hi-tech agro input products, which includes micro irrigation systems, PVC piping products, tissue culture plants and agri R&D, on a QOQ has shown a 15% decline in sales. Consequently, EBIDTA on the same has come down from 26% in current Q2 to 22%. Industrial products did well and probably helped shore the margins. Revenue of IP was up 31% and EBIDTA margin was up by 1% at 21%. Overall net sales, has shown a sequential drop of 1.8%.
Apart from fall in revenue, operating expenses rose on a QoQ by 2.56%. So these two factors together pulled down the numbers. Net profit was down 23% at Rs.42.56 crore.
Drip irrigation is actually the bets method to combat a poor monsoon and with more and more states realising this, it would only go to increase business for Jain. Infact, the company which has been concentrating more in southern and western India but it is now making plans to enter central and north India. Apart from concentrating on domestic demand, the company is also looking at exports. It has invested $10 million to set up a new plant to make irrigation systems and plastic pipes in Turkey, production at which will begin this month. It is also planning to expand into Israel and U.S but no real investments for the same have been made yet.
It currently has an order book of Rs.900 crore of which majority is for micro-irrigation. It is also planning to tap Asian and Middle-east markets for selling processed food, where it already sells micro-irrigation.
Its growth in FY10 is expected to be led by micro-irrigation division which, it expects to grow by 40% and next driver being food processing, which it hopes would grow by 20-25%.
Companies which have an agri focus would do well and especially Jain. Stay invested.

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

Intraday Trading Calls for 26th November

Indian Stock Market may open negaive but remains very volatile and a flat to positive closing expected.

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

SCRIP NAME	TRIGGER	PRICE	TARGET 1	TARGET 2
AMBUJA CEMENT	Buy Above	92.65	95.20	98.00
	Sell Below	91.40	89.45	86.00
IDFC	Buy Above	170.75	173.65	177.00
	Sell Below	169.35	165.55	161.00
AHLUWALIYA CONTRACT	Buy Above	180.10	185.05	192.00
	Sell Below	177.40	172.35	168.00
GODREJ INDUSTRIES	Buy Above	206.50	211.10	216.00
	Sell Below	204.15	200.10	195.00
BAJAJ HIND	Buy Above	224.25	229.65	234.00
	Sell Below	221.05	216.35	212.00
GMDC	Buy Above	131.75	135.40	140.00
	Sell Below	128.70	124.35	120.00
COMPACT DISC	Buy Above	67.70	71.20	75.00
	Sell Below	66.45	63.20	60.00

GOOD LUCK

Stock Idea: Andhra Bank

Company snapshot
Andhra Bank, founded by the freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya, commenced business on 28 November 1923. The bank is headquartered in Hyderabad and has a concentrated network in the state of Andhra Pradesh with major proportion of its advances being generated from the branches located in the state.
The Bank has posted whopping qtrly result during the qtr ending Sept’09. The return on Asset of bank stood at 1.54% as compare to 1.12 %( Q2FY09) & 1.44 %( Q1FY10).The bank has also shown rise in Return on Equity as it stood at 30.05% as compare to 19.89%(YoY) & 25.60%(QoQ).The Provision coverage ratio of bank stood at 81.12% as compare to 76.65 %( Q2FY09) &
72.26 %( Q1FY10) The cost ratios of the bank depicted the firm trend as cost of funds shown drop to 5.88% from 6.21% (YoY) & 6.13%(QoQ)The cost to income ratio of bank has also shown great improvement to 39.45% from 50.27%(YoY) and 48.78% (QoQ).The Net Interest Margin of bank increased to 2.90% form 2.50% in qtr ended June’2009.The growth was mainly attributed
to drop in cost of funds and higher credit to deposit ratio during the qtr ended Sept’09.
Business Details
Andhra Bank, founded by the freedom fighter Dr. Bhogaraju Pattabhi Sitaramayya, commenced business on 28 November 1923. The bank is headquartered in Hyderabad and has a concentrated network in the state of Andhra Pradesh with major proportion of its advances being generated from the branches located in the state. Andhra Bank is a fast growing public sector bank in the country with a total business size of Rs.110460 crore as on 30 Sept 2009. It renders services through 2421 delivery channels consisting of 1536 branches, 798 ATMs spread over 22 states and 2 Union Territories. The bank played an important role towards developing and expanding self help groups (SHGs). It continued to focus on agriculture and allied activities ensuring a steady flow of credit to this sector. Finance to Agricultural sector by bank stood at Rs 7482 Crores .All Branches of the Bank are under CBS. Bank has also launched Online Tax payment (eTax) along with Internet Banking (Retail as well as Corporate). Bank also provides facilities like SMS Alerts over Mobile Phones for certain type of transactions and account balances are made available to clientele registered for this facility.
As on 30th September 2009, 7.53 Lakh customers got registered for this facility. Bank is also providing its customers facility to request for account information through SMS-pull facility. Customer can seek balance enquiry, mini-statement, cheque status, etc through this facility. Bank also offers customers the facility to subscribe to Initial Public Offers of corporate using Applications Supported by Blocked Amount Scheme. Bank's Internet Banking Customers can participate in Online Trading via M/s Religare. Bank has also launched a web based fast forex remittance facility (AB Speedway) for the benefit of NRIs of U.S.A .
Industry Outlook

Indian banking industry faced many uncertainties during 2008-09 in the face of tight market liquidity in the global financial markets. The RBI's prompt and relevant measures ensured adequate domestic and foreign liquidity to Indian banking industry so that the flow of credit to productive sectors would not suffer much. Yet, on account of the severe global economic slowdown and its spillover effects on India, growth of bank credit to commercial sector decelerated in 2008-09. Moreover, expansion in net foreign exchange assets of the Indian banking industry moderated to a large extent. However, the Indian banks, in general, posted healthy financial results during 2008-09 compared to their global peers despite challenging economic conditions. The outlook for Indian banking industry remains positive in 2009-10 on the backdrop of its stricter prudential regulation by the RBI, sound financial indicators and stable political regime.

Investment Rationale
Bank has recently received R2 approval for the insurance Joint Venture with Legal & General and Bank of Baroda. Also, Bank has signed MOU for launching a banking subsidiary in Malaysia jointly with Bank of Baroda and Indian Overseas Bank. This will help the bank in expanding its presence in Malaysia. Bank has tied up with Piaggio Vehicles aimed at offering a highly competitive retail financing scheme that ensure low interest rates to the customers which will in turn provide boost to the credit offtake of bank. Also, the new corporate slogan ‘Andhra Bank….for all your needs’ is introduced during the first quarter reflecting good recall and visual value. Bank has opened 104 branches during the Half year taking the total number of branches to 1536. With 49 ECs, 38 Satellite Offices and 798 ATMs the total number of delivery channels of banks has increased to 2421. Also, number of ATMs of the Bank increased to 798 as on 30-09-2009. Besides Banks owned ATMs, the ATM/ Debit Cards issued by Bank are accepted on NFS Network, VISA Network and under bilateral arrangements numbering in all 45000 ATMs Number of ATM/Debit Cards issued by the bank increased from 35.4 Lakhs as on 31-03-2009 to 45.52 Lakhs as on 30-09-2009. For remote branch connectivity for CBS, Bank has deployed 251 VSATs. Retail credit registered robust growth of 34.73% over previous year and reached Rs. 7149 Crs as at the end of September-09 Also, lending to MSME sector has gone up by 52.19% and reached Rs. 6835 Crs. All other advances including Corporate credit moved up to Rs. 25645 Cr from Rs. 19800 Cr, year on year. Bank aims to attain a business mix of Rs.1,30,000 Crs by the end of March 2010 at a growth rate of 30% and Rs.1,50,000 Crs by September 2010. Bank is also targeting to reach CASA percentage of 33% of total deposits by March2010. Bank shall be rolling out the insurance products of its own Joint Venture for sale by July 2010. Banking subsidiary in Malaysia jointly with BoB and IOB expected to function next year.
Valuation
At the current price of Rs 117, the Bank is trading at 6.01times to its TTM eps of Rs 19.45. The bank has posted whopping results for qtr ended Sept’09. With the plans of strengthening its network and customer base while focusing on further enhancement in the customer service through innovative products and services, bank will continue to leverage technology for an all-round performance. Looking at the strong financial performance, the bank looks undervalued at the current price of Rs 117. Hence we recommend investors to “BUY” the stock with the price target of Rs 155 in medium term which is 32% above from the current price of Rs 117.

Source: Internet (Valuenotes by Hem Securities)

Intraday Trading Calls for 25th November

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
ICSA	Buy Above	172.25	176.35	180.00
	Sell Below	169.70	166.15	162.00
IDFC	Buy Above	168.75	172.05	176.00
	Sell Below	167.35	164.10	160.00
IGL	Buy Above	171.25	175.20	179.00
	Sell Below	169.40	165.35	161.00
GODREJ INDUSTRIES	Buy Above	208.25	213.55	220.00
	Sell Below	205.35	200.10	195.00
ROLTA INDIA	Buy Above	177.10	181.35	185.00
	Sell Below	175.10	171.45	167.00
GMDC	Buy Above	130.60	134.55	140.00
	Sell Below	127.35	122.70	118.00
COMPACT DISC	Buy Above	65.25	67.55	70.00
	Sell Below	64.35	62.10	60.00

GOOD LUCK

Stock Idea: Nagarjuna Construction Co. Ltd.

Nagarjuna Construction Co. Ltd— BUY—166—INR
Sector — Construction (Infrastructure)
Regd.Off.— 41, Nagarjuna Hills, Hyderabad, A.P.-500 082
Listed — NSE, BSE.
Company Overview—
Nagarjuna Construction Company was incorporated in 1978. The company has consolidated its presence in high growth infrastructure sector such as Roads, Water supply, and Electrical Transmission Systems. Company went public in 1992 and is engaged in industrial construction, housing development projects, plant and non-plant construction for nuclear projects, construction of hospitals, construction of roads and bridges including national highways, fabrication, erection of structural steel works etc. Apart from the conventional construction methods, the company adopts the NBS Cellular System, which was developed in collaboration with Byyging Uddheman AB of Sweden and NCC Pre Fab System, which was developed in house. Strategic tie-ups with leading multinational companies keep NCC abreast with latest developments in the field of construction and also put it on par with international companies in terms of standards of performance and quality of projects.
Products & Services—
Company is involved into construction of Industrial & Commercial buildings, Roads, Bridges & Flyovers, Water Supply & Environmental projects, Housing, Power transmission lines, Real Estate development, Irrigation and Hydropower Projects, Social amenities etc. Company has presence & capabilities in all area of construction activities. Company has ISO 9001:2000 certifications.
Industrial Structures & Buildings— Company provides long lasting buildings and industrial structures at optimum cost and in minimal time. Construction of large factory and workshop structures has been made speedier and more economical by the use of modern construction methods including folded plate and shell roofs, precast and prestressed roof elements etc. The largest Cardiac hospital in Asia; a record seven month turnaround time for a turnkey Airport project; the largest single concrete slab in Asia, Company has notched up many firsts to its credit.
Transportation— Indian Government is actively building world-class infrastructure facilities in the country, to place it on par with developed economies elsewhere in the world. High density corridors have been identified and the exercise of strengthening and four laning of highways has already been started. Company has been chosen to execute highways, bridges, flyovers and road projects all over the country. The carriageway of a ring road, Bangalore; the construction of an international quality six lane highway in Samalkha, Haryana; the Kalina-vakola junction flyover, Mumbai; the Grade separator at Bangalore; the Subway and Flyover at Latur, stand for company's expertise in infrastructure projects.
Water & Environment— Company executed major water supply projects, drainage schemes, construction of water and sewage treatment plants, turnkey solutions in water supply and UGD schemes, including survey and design. It has capabilities in the areas like - Turnkey implementation of rural, urban and industrial water supply projects from concept to commissioning, implementation of waste water collection systems for urban communities and industrial waste disposal, implementation of water treatment plants and sewage treatment plants from concept to commissioning.
Housing— Company has developed and deployed innovative operational methods including the highly effective: 1) NBS Cellular Construction System - It replaces all conventional methods of building construction by incorporating load bearing RCC shear walls. Roof slab is cast monolithic with RCC walls, eliminating construction joints and thus reducing the possibility of cracking and dampness, while enhancing the speed of construction manifold. 2) NCC Precast Construction System - It involves the manufacture of precast building components at site to achieve larger volumes of built-up area and greater quality levels in the least possible time.
Electricals— Company has expertise in the engineering and construction of EHV/HV sub-stations, transmissions and distribution lines, distribution system improvement projects, internal and external electrification of multi-storeyed utility buildings & commercial complexes and township electrification.
Property Development— Company has acquired properties for the construction and sale of independent houses, multi-storyed apartments and commercial complexes. The initial ventures have been undertaken in Bangalore/Mysore. Residential flats in JP Nagar, Bangalore; residential apartments at Mysore; Nagarjuna Elysses, deluxe apartments coming up in Richards Town, Bangalore; Nagarjuna Gardens, Sahakarnagar; Nagarjuna Spectrum, at Indiranagar, Bangalore; Nagarjuna Green Ridge at HSR layout, Nagarjuna Maple Heights at Marthahalli Bangalore, Nagarjuna Green Woods at Marathahalli Bangalore, Nagarjuna Pearl Bay at Kochi, Bangalore speak of NCC's determined efforts to excel in this area of construction.
Irrigation & Hydropower— with good presence in various sectors of the construction industry and looking to the emerging opportunities the company is working on various water supply and power plants projects around the country.
Recent developments—
In July 2009, Company has obtained three new orders aggregating Rs 7.76 billion. The first order valued at Rs 6 billion is secured from Employees State Insurance Corporation, New Delhi for construction of medical college and related works at Mandi, Himachal Pradesh to be completed over a period of 24 months. The second order is from general manager, Mezgon Dock, Mumbai for Mazdock Modernization Project works in Mumbai valued at Rs 1.36 billion to be completed over a period of 28 months and the third is from National Institute of Technology, Assam for construction of 500 capacity boy’s hostel valued at Rs 400 million to be completed over a period of 16 months.
In September 2009, Company has bagged two new orders aggregating Rs 4.81 billion. The first order valued at Rs 4.49 billion is obtained from Water Resource Department, Bihar for execution of restoration of Eastern Gandak Canal system to be completed over a period of 25 months. Meanwhile, the second order is from MRF, Chennai for construction of proposed radial tyre plant and easy tyre plant in Andhra Pradesh valued at Rs 320 million to be completed over a period of 6 months.
In Nov 2009, Company has secured five orders aggregating Rs 7.22 billion. The first order is valued at Rs 3.28 billion from Water Supply & Sewerage Board, Bangalore for water supply and sewerage project at West Bangalore to be completed over a period of 26 months. The second is order from Water Resources Department, Bihar for construction of Bituminous Road worth Rs 1.43 billion to be completed over a period of 24 months. The third, fourth and fifth orders are worth Rs 1 billion, Rs 910 million and Rs 600 million respectively.
Valuation—
At current market price, stock is trading at 19.57 P/E multiple of its FY2010 estimated earnings. We recommend investors to buy “Nagarjuna Construction Company Ltd” with medium to long-term investment horizon.
Source: Internet (Valuenotes by Abhishek Jain)