Fw: Restriction on funds movement between various market segments

Dear Customer, Greetings of the day and thank you for your continued support and patronage of our trading services! We write to update you of the recent regulatory changes, wherein fund movement /transfers between all Commodity and Equity segments will be discontinued effective April 01, 2012. Thus going forward, funds available in either market segment(s) of your Sharekhan trading account(s) can be moved /transferred only to your bank account and then in turn will have to be re-deposited /transferred to your trading account in order to complete margin obligations /take fresh positions. We will soon be enabling all our online partner banks available in the Equity segment for fund transfers in the commodities segment to minimize hindrances to your trading activity. Banks not available for online transfers will have to temporarily use alternative means of transfers such as NEFT and RTGS till such time we partner with them. However we request you to note that Intersegment transfers between the below mentioned segments would still continue as before. Securities Segment BSE- Equity and Futures & Options NSE- Equity, Futures & Options and Currency Segment MCX SX-Currency Segment IPO and Mutual Fund Commodities Segment MCX NCDEX National Spot Exchange     Request you to maintain adequate margins individually in each of these market segments you wish to trade in. Feel free to call our customer service desk at 1800-22-7500 /39707500 or write us at myaccount@sharekhan.com in case of any queries. Alternatively you could also get in touch with your nearest Sharekhan shoppe. We look forward to a long and pleasant association. Warm regards, Team Sharekhan

Registered Office: Sharekhan Limited, 10th Floor, Beta Building, Lodha iThink Techno Campus, Off. JVLR, Opp. Kanjurmarg Railway Station, Kanjurmarg (East), Mumbai - 400 042, Maharashtra. Tel: 022 - 61150000. Sharekhan Ltd.: SEBI Regn. Nos. BSE Cash-INB011073351; F&O-INF011073351; NSE - INB/INF231073330; CD - INE231073330; MCX Stock Exchange: CD - INE261073330; United Stock Exchange: CD - INE271073350; DP: NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMS INP000000662; Mutual Fund: ARN 20669. Commodity trading through Sharekhan Commodities Pvt. Ltd.: MCX-10080; (MCX/TCM/CORP/0425); NCDEX -00132; (NCDEX/TCM/CORP/0142); National Spot Exchange Ltd :12790; for any complaints email at igc@sharekhan.com ; Disclaimer: Client should read the Risk Disclosure Document issued by SEBI & relevant exchanges and Do's & Don'ts by NCDEX, and the T & C on www.sharekhan.com before investing.

Fw: Clubbing of Settlement on April 04, 2012

 

Dear Customer, This is to inform you that on account of settlement holiday due to Annual Closing of Banks on April 2, 2012 multiple settlements have been scheduled on April 4, 2012. Shares bought on Mar 30, 2012 cannot be sold on April 02, 2012 as trade done on both these days will be settled together on April 04, 2012.  Client are requested to take note of Pay in schedule:-

Settlement Type & Number Trade Date Settlement Date Timings to submit Pay-in instructions to Depositories / banks NN/NZ-2012062 30-Mar-12 4-Apr-12 9.30 a.m. BW/BC-1213002 30-Mar-12 4-Apr-12 9.30 a.m. NN/NZ-2012063 2-Apr-12 4-Apr-12 1.30 p.m. BW/BC-1213003 2-Apr-12 4-Apr-12 1.30 p.m.

If you require any clarifications or assistance, you may please write to us at cs@indiainfoline.com or Reach our Customer Care Desk at (022) 40071000 or at our zonal customer service numbers: North -011-49315020, East - 033-44048600, Maharashtra-022-40609292, Gujarat and Madhya Pradesh -079-40271800, South-080-40547030   Regards, Loveena Khatwani Head, Customer Service India Infoline Limited

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Fw: Investor's Eye: Update - IL&FS Transportation Networks (Meets order inflow target; thus allaying concern), Fertilisers (Sector dynamics weak; prefer SSP and urea players)

 

 

Investor's Eye [March 29, 2012]  Sharekhan www.sharekhan.com

Summary of Contents STOCK UPDATE IL&FS Transportation Networks Cluster: Emerging Star Recommendation: Buy Price target: Rs330 Current market price: Rs185 Meets order inflow target; thus allaying concern Key points Recent order wins help ITNL meet its annual order inflow target: For FY2012 so far, IL&FS Transportation Networks (India) Ltd (ITNL) has bagged projects worth Rs4,815 crore of which 86% orders came during Q4FY2012. Throughout the year the management guided for an order inflow target of about Rs5,000 crore which until Q4FY2012 seemed like a herculean task as the company had managed to pocket only Rs674 crore worth of projects by then. This goes to show the well-chalked-out strategy of the management to wait and not aggressively bid for projects at the cost of lower margins. Concerns over EPC revenue visibility fade out: During Q4FY2012 the company bagged build-operate-transfer (BOT) projects worth Rs4,140 crore that will be constructed over a period of 24-30 months. The recent projects will add about 50% to the company's existing order book of Rs8,160 crore as at the end of Q3FY2012. Thus, the bagging of the orders allays the concerns with regards the revenue visibility of the engineering, procurement and construction (EPC) segment in FY2013 and beyond. It will also provide a fillip to the project management fee income over FY2013 and FY2014.  Kiratpur Ner-Chowk project to achieve a financial closure soon: The company had won the Kiratpur-Ner-Chowk project in January 2012 and as per its management, the financial closure is expected by the first week of April this year. This reiterates the excellent management capabilities and strong parentage enjoyed by the company. Further, prudent bidding also helps in achieving a financial closure fast. The Kiratpur-Ner-Chowk project is located in Himachal Pradesh and is to be executed on a toll basis with a concession period of 28 years including the construction period of three years; it is worth Rs1,900 crore. The company had quoted a grant of Rs134.57 crore for the project.  NHAI set to meet its FY2012 target; chalks another ambitious target for FY2013: For year till FY2012 the National Highways Authority of India (NHAI) has awarded 5,457km of projects as against a target of 7,300km. The remaining 1,500-2,000km of projects are set to be awarded in a couple of days by the end of March 2012. Bids for the same have already been called for. Further, in the Budget for FY2012-13 the government has set an ambitious target for NHAI to award 8,800km of road projects, the highest ever in history. Given the intent of the government and the commitment shown by the NHAI in the current year to meet its target, the road sector is on the brink of a huge opportunity to be witnessed in FY2013.  Competitive intensity fading: An analysis of the projects awarded over the past three months reveals that the number of bidders for a particular project has come down. Earlier the figure would touch nearly 20 but now it's down to maximum nine to ten. However, the difference between the top two bids as well as the lowest and the highest bidder remains high. Maintain Buy: The recent project wins are very positive as the company had not won any big road BOT project since May 2010. Thus, the absence of any new win was the key concern and an overhang on the stock. ITNL had not been bidding aggressively unlike the other players to bag projects. This, we believe, was a prudent step. Now these project wins have allayed the concerns and provided revenue visibility. However, we are not factoring these project wins in our estimates currently and would do so as and when these projects achieve the financial closure. Further, given its strong balance sheet, the company is also looking at inorganic growth, like the recent acquisition of a Chinese project. We believe that given its strong parentage and scale of operations, the company stands to gain from the expected consolidation in the sector. We maintain our Buy rating on the stock with a price target of Rs330. At the current market price the stock is trading at 7.8x and 6.3x its FY2012E and FY2013E earnings respectively. SECTOR UPDATE Fertilisers     Sector dynamics weak; prefer SSP and urea players   Weak volume offtake of complex fertilisers; urea gains from price differential: After a robust growth of 16% in the first 11 months of FY2011, the growth in the volume offtake was sluggish at 2.7% in the first 11 months of FY2012. The volume offtake in the complex fertiliser segment has fallen by 7.7% against the strong growth of 26% seen in the same period of the last year. The complex fertiliser manufacturers have suffered due to the rising prices of complex fertilisers globally, the widening price differential with urea (urea prices controlled in India) and the lower imports due to the logjam between the Indian importers and the global manufacturers of MOP. However lower availability and high price of DAP and phosphoric acid in the international market resulted in lower indigenious production and import of DAP. Among the complex fertilisers, the demand for DAP and MOP have seen a decline of 12% and 33% respectively year on year (YoY). The prices of DAP and MOP have seen a steep increase of 87% and 101% respectively which has affected the demand for these fertilisers. Subsidy cut to put more pressure on volume sales of complex fertilisers; cautious on complex fertiliser companies like Coromandel, Rashtriya Chemicals and Fertilizers (RCF) but positive on SSP manufacturers (Rama Phosphates and Liberty Phosphate): The government has reduced the subsidy pay-out to non-urea fertilisers discounting the decline in the prices of the raw materials in the international market. The reduction in the subsidy was in the range of 10% to 33% for potash and phosphorous respectively. If the raw material prices do not stabilise at lower levels, the complex fertiliser manufacturers would have to increase the effective selling prices which would further weaken the already subdued demand environment for complex fertilisers. Partial decontrol of urea is positive for urea players: An increase in the consumption of urea will force the government to increase the price of urea and consider the partial decontrol of the urea to bring its price in line with that of the other non-urea fertilisers. An increase in the price of urea will help the government to reduce the subsidy on domestic and imported urea. We view this as a positive move and the announcement of the same would provide a trading opportunity in urea stocks like Chambal Fertilisers and Chemicals, Zuari Industries, Nagarjuna Fertilisers and Chemicals, and National Fertilisers. Thus, we maintain a cautious view on complex fertiliser companies like Coromandel, RCF and Tata Chemicals to some extent. Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article.

Fw: Sharekhan's top SIP fund picks

 

 

Mutual Gains [For March 28, 2012]  Sharekhan www.sharekhan.com

Summary of Contents MUTUAL GAINS Sharekhan's top SIP fund picks Large-cap funds Multi-cap funds Principal Large Cap Fund ICICI Prudential Discovery Fund - IP Birla Sun Life Frontline Equity Fund - Plan A Birla Sun Life Dividend Yield Plus Tata Pure Equity Fund Tata Dividend Yield Fund Birla Sun Life Top 100 Fund UTI Opportunities Fund Reliance Top 200 Fund - Retail Quantum Long-Term Equity Fund BSE Sensex BSE 500 Mid-cap funds Tax saving funds SBI Magnum Sector Funds Umbrella - Emerg Buss Fund HDFC Taxsaver DSP BlackRock Small and Midcap Fund Fidelity Tax Advantage Fund Sundaram Select Midcap Franklin India Taxshield IDFC Premier Equity Fund - Plan A Religare Tax Plan Sundaram SMILE Fund ICICI Prudential Taxplan BSE Midcap S&P Nifty Fund focus Principal Large Cap Fund Click here to read report: SIP fund picks   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article.

Regards, The Sharekhan Research Team myaccount@sharekhan.com Manage your newsletter subscriptions

 

Investor's Eye: Update - Jaiprakash Associates; Special - Monthly economy review; MF - Sharekhan's top equity mutual fund picks, Sharekhan's top SIP fund picks

 

 

Investor's Eye [March 28, 2012] Sharekhan www.sharekhan.com

Summary of Contents STOCK UPDATE Jaiprakash Associates Cluster: Ugly Duckling Recommendation: Buy Price target: Rs105 Current market price: Rs77 New orders in bag, execution a key challenge The company has bagged orders worth Rs913 crore in Bhutan for construction of 720MW hydroelectric projects. The expected margin in the newly awarded projects is around 20-21%, which we believe is positive for the engineering, procurement and construction (EPC) division of the company. Further, the company has successfully completed two mega projects, namely the Karcham Wangtoo project and the Yamuna Expressway project, and will start generating revenue in the near term. Further, the cement division has posted a robust 40% volume growth for February 2012 due to an improvement in the cement demand and capacity addition. With the increase in the price of cement in the past couple of months, the realisation and EBITDA per tonne of cement in Q4FY2012 are expected to improve on a sequential basis.  Valuation: We continue to like JAL due to its diversified business model and aggressive expansion plan. However, the cost pressure in the cement division and the fluctuating profitability in the construction division will be the key risks. In terms of valuation, we continue to value the stock using the sum-of-the parts (SOTP) valuation method and arrive at a value of Rs105 per share. We maintain our Buy recommendation on the stock with a price target of Rs105. At the current market price, the stock is trading at PE of 25.1x FY2012 and 18.5x FY2013 earnings estimates. SHAREKHAN SPECIAL Monthly economy review   Economy: Industrial growth remains subdued; inflation increases In January 2012, the Index of Industrial Production (IIP) grew by 6.8%, which was significantly higher than the market's expectations. The higher than expected performance was led by a strong growth in the manufacturing sector (up 8.5% year on year [YoY]) and a sharp jump in the non-durable consumer goods sector.  The Wholesale Price Index (WPI)-based inflation for February 2012 came in at 6.95%, higher than the Street's expectations. The inflation rate for December 2011 too has been revised upwards to 7.74% from the provisional figure of 7.47%. The growth in exports remained weak showing an increase of 10.1% YoY (up 6.7% in December 2011). Imports grew by 20.3% YoY (up 19.8% in December 2011). The trade deficit for January 2012 came in at $14.7 billion, higher than the trade deficit level recorded in December 2011. The trade deficit increased by 117.9% YoY.  Banking: CRR cut by 75 basis points; interest rates likely to decline in Q1FY2013 In its last policy meeting, the Reserve Bank of India (RBI) had maintained the status quo on the interest rates. However, prior to the monetary policy the RBI had reduced the cash reserve ratio (CRR) by 75 basis points (125 basis points since January 25, 2012). However, at the March 15th mid quarter policy review the RBI kept the rates unchanged. Going ahead, if inflation moderates or the government initiates steps for fiscal consolidation the RBI may reduce the repo rates in the April 17th policy review meeting. The credit offtake registered a growth of 16.4% YoY (as on March 9, 2012), which was higher than the growth of 15.8% recorded in the previous month (as on February 10, 2012). The credit growth is in line with the RBI's guidance of 16%. The deposits registered a growth of 13.9% YoY (as on March 9, 2012), which was lower than the 15% year-on-year (Y-o-Y) growth seen during the previous month (on February 10, 2011). The growth in the deposits has fallen due to the higher yields offered by the other debt instruments. The credit-deposit (CD) ratio was at 76.7% (as on March 9, 2012), higher compared with the 75.6% CD ratio as on February 10, 2012. Meanwhile, the incremental CD ratio increased to 109% for the period, which was higher than the ratio seen during the previous month, reflecting a slower deposit growth and tighter liquidity in the market.  The yields on the government securities (G-Secs; of ten-year maturity) stood at 8.6% as on March 28, 2012, in line with the previous month's levels. The G-Sec yields across the long-term maturities have increased on a month-on-month (M-o-M) basis. Equity market: FIIs remain buyers  During the MTD period in March 2012 (March 1-26), the FIIs were net buyers of equities and the domestic mutual funds were net sellers of domestic equities. For the MTD period in March 2012 (March 1-26), the FIIs bought equities worth Rs8,702 crore while the mutual funds sold equities worth Rs1,081 crore. MUTUAL GAINS Sharekhan's top equity mutual fund picks   Large-cap funds Mid-cap funds Multi-cap funds ICICI Prudential Focused Bluechip Equity Fund - Ret SBI Magnum Sector Funds Umbrella - Emerg Buss Fund ICICI Prudential Discovery Fund Franklin India Bluechip HDFC Mid-Cap Opportunities Fund SBI Magnum Global Fund 94 Principal Large Cap Fund DSP BlackRock Small and Midcap Fund Reliance Equity Opportunities Fund DSP BlackRock Top 100 Equity Fund - IP Religare Mid Cap Fund Mirae Asset India Opportunities Fund - Reg UTI Wealth Builder Fund - Series II IDFC Sterling Equity Fund  Reliance NRI Equity Fund Indices Indices Indices BSE Sensex BSE MID CAP BSE 500 Tax saving funds Thematic funds Balanced funds ICICI Prudential Taxplan Fidelity India Special Situations Fund HDFC Prudence Fund Canara Robeco Equity Taxsaver Canara Robeco Infrastructure Fund HDFC Balanced Fund Reliance Tax Saver (ELSS) Fund UTI India Lifestyle Fund Reliance RSF - Balanced Tata Tax Advantage Fund - 1 Birla Sun Life India GenNext Fund Canara Robeco Balance Taurus Taxshield DSP BlackRock Natural Resources & New Energy Fund-Ret Tata Balanced Fund Indices Indices Indices CNX500 S&P Nifty Crisil Balanced Fund Index   Fund focus UTI India Lifestyle Fund Sharekhan's top SIP fund picks Large-cap funds Multi-cap funds Principal Large Cap Fund ICICI Prudential Discovery Fund - IP Birla Sun Life Frontline Equity Fund - Plan A Birla Sun Life Dividend Yield Plus Tata Pure Equity Fund Tata Dividend Yield Fund Birla Sun Life Top 100 Fund UTI Opportunities Fund Reliance Top 200 Fund - Retail Quantum Long-Term Equity Fund BSE Sensex BSE 500 Mid-cap funds Tax saving funds SBI Magnum Sector Funds Umbrella - Emerg Buss Fund HDFC Taxsaver DSP BlackRock Small and Midcap Fund Fidelity Tax Advantage Fund Sundaram Select Midcap Franklin India Taxshield IDFC Premier Equity Fund - Plan A Religare Tax Plan Sundaram SMILE Fund ICICI Prudential Taxplan BSE Midcap S&P Nifty   Fund focus Principal Large Cap Fund   Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a postition in the companies mentioned in the article.