Sensex

Friday, June 19, 2009

DG - FW: Stock Ideas: IDBI Bank (At an inflexion point) [1 Attachment]

[Attachment(s) from RoHiT included below]

 

 

From: Sharekhan Fundamental Research [mailto:marketwatch@research.sharekhan.com]
Sent: 19 June 2009 15:35
To: Sharekhan Fundamental Research
Subject: Stock Ideas: IDBI Bank (At an inflexion point)

 

 

Stock Ideas
[June 19, 2009] Please see the attachment for details

Sharekhan
www.sharekhan.com

Summary of Contents

STOCK IDEAS 

IDBI Bank
Cluster: Cannonball
Recommendation: Buy
Price target: Rs169
Current market price: Rs106

At an inflexion point

Key points

  • Operating performance to get a boost: IDBI Bank, which had been operating on a wafer thin net interest margin (NIM) of around 1% in the past, is expected to see some improvement on the margin front, as ~69% of its deposits are likely to get re-priced at lower rates in the current fiscal. The bank is also substituting its high-cost borrowings with deposits in order to contain its cost of funds. Not only that, it has also stepped up efforts to increase the share of its high-yielding retail loans. Thus, the bank’s operating performance is expected to improve in FY2010 even in the face of challenges like low CASA and weak margins.
  • More impetus from capital infusion: At 11.6% IDBI Bank’s capital adequacy ratio is above the regulatory requirement but lower than the preferred level of 12%. Since the bank evidently has little room to grow its balance sheet without raising capital, the government proposes to infuse capital into it. A capital infusion will be a major catalyst for the bank as it would facilitate the bank’s efforts to achieve higher growth and profitability, and thus lead to the re-rating of the stock.
  • Investments, the hidden wealth: What’s more, the bank’s huge portfolio of quoted and unquoted investments could be another major source of funds when needed. The bank could unlock value from these investments and boost its profitability. Some of the companies in which IDBI Bank holds a significant stake include NSE, LIC, IDFC, IFCI, NSDL, CARE, ARCIL and SIDBI. These major investments collectively contribute about Rs42 to our SOTP valuation of the bank.
  • Attractive valuations: IDBI Bank is expected to improve its core business gradually as its NIM expands from 1.06% in FY2009 to 1.3% in FY2010 on a conservative basis. We expect the bank’s RoE (excluding revaluation reserves) to increase from 12.1% in FY2009 to 13.8% in FY2010 and to 14.3% in FY2011. At the current market price of Rs106, the stock is trading at 5.8x its FY2011E EPS, 0.8x its FY2011E BV and 1.0x its FY2011E ABV. We have valued IDBI Bank using the SOTP valuation method as per which its core business of banking is valued at Rs118 per share (at 1.1x its FY2011E ABV). Considering this along with the value of the bank’s investment portfolio and subsidiaries we arrive at a price target of Rs169 over a period of 12-18 months. This implies an upside of ~60% from the current levels. We initiate coverage on IDBI Bank with a Buy recommendation.  

Regards,
The Sharekhan Research Team

myaccount@sharekhan.com 

 

__._,_.___

Attachment(s) from RoHiT

1 of 1 File(s)

IDBIBank-19-Jun-2009.pdf
Regards

BigGains !!
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 3:47 AM 0 comments

Wednesday, June 17, 2009

DG - Need Help



Dear All,

 

I’m looking to register a two letter domain in “.in” TLD. Say www.xx.in  

Can you help me in the same. From where can I register the same.

 

I have already tried lot of other domain registrar but failed to do so. If you know how can it be done, please assist.

 

Regards, Rohit

__._,_.___
Regards

BigGains !!
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 10:31 AM 0 comments

DG - Amaze your friends, be the first to tell them



On August 7 , 2009 
  
At 12hr 34 minutes and 56 seconds on the 7th of August this year, the time and date will be 
  
12:34:56 07/08/09

 


1 2 3 4 5 6 7 8 9 
  
This will never happen in your life again??!!!!

 

 

 

__._,_.___
Regards

BigGains !!
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 8:13 AM 0 comments

DG - Nifty Prediction for 18th June, 2009



The prediction of every phase must be considered in comparison to the prediction of the previous phase.
Arrive at decisions only after going through the predictions thoroughly, so that you can maximise gains and minimise losses.
Nifty may remain volatile from June 18-25, 2009. It may also follow a downward trend during this period.
The predictions are made on astrological basis. The Dow Jones, NASDAQ, news and the rates prevailing in the stock market aren't taken into consideration before making the following predictions. If you remain tactful and bear in mind the aspects of business in shares, you will not be far from gains.

 

  • Ganesha feels that June 18-19, 2009 are days when Nifty may not be reliable.
  • From 9:55 to 13:25, buy-sell only if you have the strength to take delivery. But enter the market based on Nifty's trend at the opening of the day. Nifty may make you play around the surface during this phase.
  • From 13:25 to 14:25, Nifty may follow a bullish trend due to increased buying. But the weightage of the day is negative. Hence, don't have high hopes. Keep booking your profits.
  • In comparison to the previous phase, Nifty may follow a downward trend between 14:25 and 15:30.

__._,_.___
Regards

BigGains !!
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 5:01 AM 0 comments

Sunday, June 14, 2009

DG - Book Profits in Jyoti Limited : CMP 63.85


__,_._,___
Posted by nsivaa at 10:09 PM 0 comments

DG - Smart Investments [1 Attachment]

Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 12:01 AM 0 comments

DG - MoneyTimes [1 Attachment]


__,_._,___
Posted by nsivaa at 12:01 AM 0 comments

Thursday, June 11, 2009

DG - Keep an eye over Jyothi Limited : CMP 55


__,_._,___
Posted by nsivaa at 2:52 AM 0 comments

Monday, June 08, 2009

DG - FW: Stock Ideas: Balrampur Chini Mills (In a sweet spot) [1 Attachment]

[Attachment(s) from RoHiT included below]

 

 

From: Sharekhan Fundamental Research [mailto:marketwatch@research.sharekhan.com]
Sent: 08 June 2009 14:52
To: Sharekhan Fundamental Research
Subject: Stock Ideas: Balrampur Chini Mills (In a sweet spot)

 

 

Stock Ideas
[June 08, 2009] Please see the attachment for details

Sharekhan
www.sharekhan.com

Summary of Contents

STOCK IDEAS

Balrampur Chini Mills 
Cluster: Emerging Star 
Recommendation: Buy
Price target: Rs148
Current market price: Rs98

In a sweet spot

Key points 

  • Cyclical upturn to boost profits: Sugar prices in India have risen sharply over the past one year, recording a gain of ~55% on the back of a sharp production drop in SY2009. Since the deficit (consumption higher than production) situation is likely to continue in SY2010 we expect the sugar prices to maintain the sharp uptrend. Balrampur Chini Mills Ltd (BCML) being the second largest sugar producer in the country will be a key beneficiary of this price surge. We expect the company’s profits to grow at a hefty CAGR of 59.2% over FY2008-11.
  • Ready capacity implies zero capex: BCML had expanded its sugar capacity by 2.6x to 76,000tcd, doubled its distillery capacity to 320klpd and increased its cogeneration capacity to 180MW over FY2005-08. This will enable it to ride the current bull phase of the sugar cycle without incurring any capex and ensure hefty free cash flow generation. Also, the integrated business model enables the company to perform better even in a sugar downcycle.
  • No leverage issues: BCML’s debt-equity ratio of 1.4x in FY2008 and 0.8x in FY2009E are much less compared with that of its peer, Bajaj Hindusthan (a debt-equity ratio of ~3x FY2009E). While this suggests a better balance sheet strength, it also enables BCML to deliver much better shareholder returns as its interest outgo is less. Also, unlike the bigger peer, which is resorting to equity issuance (and the resultant dilution in equity) to tide over its high debt-equity, BCML has no such issues. Thus, we expect BCML to deliver a return on equity (RoE) of 17.4% in FY2009 and of 20.8% in FY2010 compared with Bajaj Hindusthan’s 3.8% in FY2009 and 11% in FY2010 (consensus estimates). Also, we believe that the hefty cash flows expected over FY2009 and FY2010 have the potential of taking BCML’s debt-equity ratio to as low as 0.5x.
  • Valuations suggest an upside of 51.8%: We value BCML at an EV/EBIDTA of 7x FY2011E considering the hefty profit growth expected over FY2008-11. Based on this valuation we arrive at a fair value of Rs148 for the stock. At the current market price of Rs98 the stock trades at 9.7x its FY2010 and 7.9x its FY2011 EPS estimates and 5.6x its FY2010 EV/EBIDTA and 4.7x its FY2011 EV/EBIDTA estimates. We re-initiate coverage on the stock with a Buy recommendation and a price target of Rs148, implying an upside of 51.8% from the current market price. 

Regards,
The Sharekhan Research Team

myaccount@sharekhan.com 

 

__._,_.___

Attachment(s) from RoHiT

1 of 1 File(s)

Balramchini-08-Jun-2009.pdf
Regards

BigGains !!
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by nsivaa at 3:03 AM 0 comments
Subscribe to: Posts (Atom)