Sensex

Thursday, October 21, 2010

**[investwise]** MARKET OUTLOOK, NIFTY RANGE, FREE CALL & TRADING STRATEGY FOR 22.10.2010

 
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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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Fwd: [stock_win_india] ROCKET STOCK….. POCHIRAJU INDUSTRIES LTD (BSE Code: 532803) AT 25/- TARGET OF 50/-

 


ROCKET STOCK….. POCHIRAJU INDUSTRIES LTD (BSE Code: 532803) AT 25/- TARGET OF 50/-

STOCK  : POCHIRAJU INDUSTRIES LTD Trading in BSE CODE : 532803

CMP : 25/- Promoters and Mutual funds Buying Heavily….. Increasing Stake

Target : 50/- to 90/- in Short term and Medium terms

Equity  : 17 Cr

Promoters  Holding : 30% ; FII's, Financial Institutions and Body Corporate : 23%; Public Only 45%

Face Value : 10/-

EPS : 6.5/-  for 2009-10 and Estimate d EPS for Full Year 2010-11 above 9/- ( Expansion Income will Add)

PE Just 3 Average PE for This Industry is 23, If we take minimum PE 10 Stock will reach 90/-++++++++ in Medium Term.

Book Value: 50/-

Reserves : 69.6 Cr (Per share = 69.6 Cr / 1.7 Cr Shares = Rs. 40.9/-)

Debt : 1 Cr Only Almost Debt Free.

Website : pochiraju dot co dot in

Pochiraju Industries Ltd Planning to Expanding Business in Pharma division and Biotech and Life Sciences Division  very Aggressively.

Pochiraju Industries Ltd Having Good Land Bank and Valuable Assets.

Pochiraju Industries Ltd Sock Will go 50/- to 90/- range in Short term and Medium Term, Like SE Investment (Call Given at 175/- Now including Bonus and Stock split 1250/-) and Bihar Tubes Ltd (Call Given at 57/- Now 165/-).

For 2009-10 Year Posted Net Income of 43.35 Cr and Net Profit of 11.25 Cr with Equity 17 Cr. As per This EPS is 6.5/- But in coming Quarters Expanding Income will add So Expecting EPS for 2010-11 is 9/- (Expanding Income will Add), Stock Trading at 24/- PE just 3 Industry PE is 23. As per this Stock will zoom to 50/- to 90/- levels in 2 to 6 Months time. Because Company Having Good Value with Small Equity and Good Promoters Holding and Good Assets and Good Financial Position and Good Future Plans.

Recently Pochiraju Industries Ltd Issue of 40,00,000 Convertible share warrants to the promoters on preferential basis for Expansion plans. Company having many Plans in  three core businesses viz. Agriculture, Pharmaceuticals andBio Pharma. Company having Huge Land Value. Its Very Strong Fundamental Stock. Future MultiBagger Stock. Excellent Pick. Public having very less shares. So will reach 50/- to 90/- soon.

In this Market Correction Time Buy Good Fundamental Stocks Like Pochiraju Industries Ltd and hold it will get good return No risk at all like this stocks.

Go Through this Full Report for Company Business, Value, Future Growth and Plans Everything in This Report, you will get Full Idea and Value of this Stock; In Future Definitely will go Multibagger and Stock will go Higher.

Pochiraju Industries Ltd (PIL) was established in 1995, initially incorporated as Pochiraju Flori Tech Ltd. The Corporate strategy of the company is to create multiple drivers of growth anchored on its core competencies .

The company is currently focusing on three business segments – Agri Business, Pharmaceuticals and Bio-Technology & Life Sciences. The organizational structure of the company is designed for effective management of multiple business, while retaining focus on each one of them.

Pharmapil is the Pharma Division of Pochiraju Industries Ltd (PIL), operating its range of Pharmaceutical Formulations on a National Level through aggressive, dynamic and committed field force of over 250 Medical Representatives. Pharmapil will have two divisions, the General and the Specialty divisions and market products in tablet, capsule, liquid, injectable, powder and ointment dosage forms.

Biopil is the Biotechnology Division of PIL. A state of art plant is under construction spread over 3.86 acres of land in the S. P. Biotechnology Park situated at Turkapally, Shamirpet, Hyderabad. This plant shall utilize cell fusion techniques, hybidomas recombinant DNA technology, protein engineering and structure based molecular design which are part of modern Biotechnology. The product range shall include Biosimilar products, such as Erythropoietin, G-CSF, Interferon Alpha, Interferon Beta, Human Growth Hormone and Recombinant Human Insulin. Biopil will have its own in house Research and Development Laboratory attached to a Common Quality Control, Documentation and Quality Assurance Laboratory.

Agropil is the Agricultural Division of PIL. From a modest start of 3 hectare of green house, it has gradually expanded its floriculture business to 6 hectare of green house and has established its presence in domestic as well as overseas markets. It will be engaged in developing hybrid varieties and genetically modified seeds, bio-fertilizers, bio-pesticides and plant growth stimulants in agriculture.

Biotech and Life Sciences Division

As a major diversification, the company is setting up a state of the modern art multi product and multi utility Bio-tech and Bio-pharma facility of International Standards to develop, manufacture and market strategically selected injectables, bio-parenterals including Oncology Products. Construction of this unit is under progress at the S.P.Biotechnology Park situated at Turkapally, Shameerpet, Hyderabad. This plant shall utilize cell fusion techniques, hybridomas recombinant DNA technology, protein engineering and structure based molecular design which are part of modern Biotechnology. The product range shall include Biosimilar products, such as Erythropoietin, G-CSF, Interferon Alpha, Interferon Beta, Human Growth Hormone and Recombinant Human Insulin.

The company's proposed manufacturing facilities will produce sterile injectables. The facilities proposed to be set up will be as per cGMP standards and strictly adhere to European, Australian and US FDA standards to cater and catch the opportunity of contract manufacturing for leading Biopharma MNCs arising as a result of WTO agreements after 2005 and also growing global generic markets.

On site chemical and microbiological analytical laboratories as well as ultra modern packing and warehousing facilities are being created. The company is adapting global standard operating procedures and systems, attract and retain qualified personnel so as to enable it to meet the latest cGMP and US FDA requirements and guidelines.

As specialists in the manufacture of Biosimilars, Biologicals, Therapeutic Proteins, Monoclonal Antibody the company proposes to offer the following full service solutions for our contract manufacturing customers.

  • Bioprocessing /purification of active materials
  • Scale up
  • Formulation development
  • Validation
  • Packing design
  • QC/QA testing
  • Regulatory affairs

Pharma Division

Pharmapil aims to help the people to lead healthier lives with specific objectives; delivering affordable and accessible medication to all parts of the World. Headquartered in India and aiming to become Global Pharmaceutical Company with Good Manufacturing Practices (GMP).

Producing a wide range of Quality and Affordable Formulations in Branded and Generic product segments, our main thrust is brand building through focused promotional activity. The company has the needed product portfolios in India, spanning key therapeutic areas, including the Cardio-vascular, neuro, diabetes Management, Respiratory, Anti-infectives, Gastro-intestinal, Dermatology, NSAIDS, Antibacterial, Antibiotics and Nutritional life style management products like Vitamins, minerals, Antiobesity drugs & Probiotics.

 

Strategy :

Pharmapil is focused on increasing the momentum in the branded formulation and generic segments in its key markets through organic and inorganic growth routes. It continues to evaluate acquisition opportunities in India and emerging into developed markets to accentuate its business and competitiveness.

 

R&D :

Pharmapil views its R&D Capabilities as a vital component of its business strategy that provides the company with a sustainable, long term competitive advantage. The R& D will focus on New Drug Discovery Research (NDDR) and New Drug Delivery System (N.D.D.S)

The company has acquired 8 acres of land in APIIC industrial estate Nadikudi, Gunturdistrict, Andhra Pradesh where in its state of the art US FDA compliance Bulk API unit is coming up with a capital outlay of Rs. 4500.00 lakhs.

 

The company has obtained all the necessary approvals for the proposed unit.

• Land Development and civil construction is under progress

• Major equipment has been identified and orders are being placed.

• The company has approached Nationalised Banks for the required term loan andworking capital.

 

Products:

The API division is focusing on the development of Anti-cancer, Anti-Allergic,Anti-ulcer and cholesterol lowering drugs. The process technology for the above API isalready developed by the In-house R&D group. Identification of basic raw materialsuppliers for the API manufacturing is under progress.

The company is also developing in house process technologies for about ten latestmolecules in the anticancer, anti-cholesterol, antibacterial segments and is planning tofile DMF for the same in the next 2 to 4 years time.

Agro Division

Pochiraju Industries Limited has its floriculture operations as a 100% EOU division cultivating, processing and exporting cut flower roses. The company's main production farm is at Satyamangalam village, Hosur taluq, Dharmapuri district, T.N.

Presently the company cultivates latest Dutch variety roses in green houses under controlled environment and is in operation since October 1999. The company is known for its quality flowers and committed deliveries in domestic and export markets. The customers are wholesalers, importers and retail outlets.

Research & Development

The strength of any Biotech company can be assessed by its Research and Development program. With an eye towards the global market, Biopil has an independent R&D Facility that provides the following services:

  • Protein Expression in Mammalian Cell System
  • Bioprocess development on Pilot Scales
  • Hybridoma Technology & Antibody production
  • Monoclonal Antibody
  • Gene cloning, Cell Line Development
  • Proteomics, Genomics and Analytical Biochemistry

The R&D laboratory has all the facilities available to offer for the above. Staffed with a highly proficient R&D team, this laboratory is equipped with the latest instrumentation to perform optimally. The R&D is geared to up scale processes systematically to ensure smooth transition of technology at commercial levels.

Pochiraju Industries Limited having Lot Expansion Plans in Fututre. Its a Multibagger stock. Just buy and hold 1 year will get 5 times Return like SE Investments Ltd (This Stock I have Recommended at 175/- levels after that reached 1200/- levels including Bonus and Split).

Positive Points for this stock for Up moving:

 

1)  Company focusing on three business segments – Agri Business, Pharmaceuticals and Bio-Technology & Life Sciences. company Circle people. Mutual Funds and Operators are accumulating at current price. Because Company Stock Good Value to buy at 25/- Good Profit making company and Book Value at 50/- and Good Assets.

2)  Equity is very small at 17 Cr promoters Holding 30%

3)  Company recently going to Expansion Plans for Business in Pharma and Bio tech Segments.

4)  Good Profit Making Company for 2009-10 EPS 6.5/- and Expecting EPS for 2010-11 is above 9/-because Expansion income will add next Quarters.

5)  Company having Good Book Value 50/- and Good Land Bank and Good Assets.

6)  Company having lot of Expansion Plans in Pharma and Bio-Tech.

7) FII's Eyes in this stock. Allready 8% holding If they will start buy Stock will zoom to 90/- levels like SE Investment (Call Given at 175/- Now including Bonus and Split 1250/-) and Bihar Tubes Ltd (Call Given at 57/- Now 165/-)

8) Risk Free at Current Market Price, Its very Cheap price Trading at 24/- Compare to companies Reserves, Assets and Value and Equity and Profits and Future Plans and power Generation.

9) This Stock is not Participated this Market Rally. So Operators, Mutual Funds and FII';s eye's in this stock.

 

Happy Invest ……….. Good Fundamentals and will give good returns from 100% to 500% returns with short and medium terms and Long terms.

 



 

Fw: L&T Infrastructure Finance Limited - Tax Saving Bonds

 
 
L&T Infrastructure Finance Company Limited, a 100% subsdiary of L&T Limited and registered with RBI as an Infrastructure Finance Company has come out with a public issue of Tax Saving Bonds.
  • Issue open already & closes on 02/11/2010.
  • Issue size of Rs.200 Crs. with an option to retain oversubscription upto Rs.500 Crs.
  • Income Tax benefit u/s. 80-CCF upto Rs.6,180/- for an investment of Rs.20,000/-
  • The Income Tax benefit is over and above 80-C, 80-CCC & 80-CCD.
  • Face Value of the Bond is Rs.1,000/- and minimum investment should be 5 Bonds
  • Maturity after 10 years & Lock in period is 5 years.
  • Buyback option available after 5 years & 7 years.
  • 7.50% interest under 5 year buyback option & 7.75% interest under 7 year buyback option.
  • Physical & Demat options available. NO TDS for interest under Demat option.
  • "CARE AA+" rating by CARE & LAA+ rating by ICRA.
  • Very attractive tax adjusted yield of more than 17% ( Annual interest / 5 year buyback option )

For more information, Please Click here.

For further informations and application forms, kindly contact your nearest branch of Integrated. For list of branches visit http://www.iepindia.com/contact.aspx   



Tuesday, October 19, 2010

Fw: Real Estate: Building Momentum – Technical View

 

Real Estate: Building Momentum – Technical View

 

Technically, Real estate index has been a laggard. In this note, we have covered Indiabulls Real Estate, DLF and Peninsula Land which is likely to do well as the positive momentum accentuate the market.

 

Real Estate stocks have been underperforming the main indices in the current rally. In last one year, the Sensex gained 16.4% while the has lost 17%. Usually the sector picks up when investors consensus on broader market improves. Similar trend was observed during late-2007. If similar trend is likely to continue, then we might see the underperformance getting voided.   

 

Indiabulls Real Estate - BUY

CMP Rs206, Target Rs245, Upside 21%

 

We believe that Indiabulls Real Estate is likely to outperform Nifty and Real Estate Index in the medium term. We recommend traders to accumulate the stock between 200-208 with stop loss of Rs180, for a target of Rs245, 250.

 

  http://content.indiainfoline.com/wc/research/researchreports/Real_Estate_stocks_191010.pdf

 

 

 



**[investwise]** The Human Element Of Trading (101019)

 


"The human element is why trading is as much a qualitative as it is quantitative activity. It is why psychology matters as much as economics and why guys with only a street level education can often run circles around Ph. D's with IQ's above 130...

http://www.stock-investing-software.com/commentary/articles.html?next=15155

Ian

This week's "Tools of the Trade": http://snipr.com/tools-of-the-trade

Explicit NON-commercial advisory: Spot-on, advantageous FREE information, products and/or services presented weekly.
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This week's "Tools" topic: With the CBOE's newest addition of weekly options, active traders can leverage high-risk / high-reward with the right trading strategy. Like all "Tools" info, this is a FREE publication. Use your $$$'s to make $$$'s.

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INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

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NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

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IIFL
IIFL
About Coal India Ltd.

The Company was originally incorporated as a private limited company with the name of 'Coal Mines Authority Limited', under the Companies Act, 1956, as amended ("Companies Act") on June 14, 1973. Subsequently, pursuant to a shareholder's resolution dated October 15, 1975 and approval of the Ministry of Law, Justice and Company Affairs (letter number RD/T/5226) dated October 21, 1975, the name of the Company was changed to 'Coal India Limited' and the company received a fresh certificate of incorporation consequent upon change of name dated October 21, 1975 from the Registrar of Companies, West Bengal ("RoC"). Thereafter, pursuant to a resolution passed by the shareholders dated February 16, 2010 and approval of the Ministry of Coal (letter number 38038/1/96-CA-II (Vol.II)) dated July 31, 2009, the Company was converted into a public limited company with effect from February 24, 2010.

The company is the largest coal producing company in the world (Source: CRISIL Research), based on the company’s raw coal production of 431.26 million tons in fiscal 2010. The company is also the largest coal reserve holder in the world (Source: CRISIL Research) based on the company’s reserve base as of April 1, 2010. As of March 31, 2010, the company operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines (which include both open cast and underground mines). The company produces non-coking coal and coking coal of various grades for diverse applications. The Company was established in 1973 and is wholly owned by the GoI. The company’s coal production operations are primarily carried out through seven of its wholly-owned Subsidiaries in India. In addition, another wholly-owned Subsidiary, CMPDIL, carries out exploration activities for its Subsidiaries and provides technica l and consultancy services for i s operations as well as to third-party clients for coal exploration, mining, processing and related activities. The company has also established a wholly-owned subsidiary in Mozambique, Coal India Africana Limitada ("CIAL"), to pursue coal mining opportunities in Mozambique and has acquired prospecting licenses for two coal blocks in Mozambique. The company has been conferred the Navratna status by the GoI, which provides it certain operational and financial autonomy. In addition, six of its wholly owned Subsidiaries, including CMPDIL, have also been accorded the Mini Ratna status by the GoI.

IIFL



Monday, October 18, 2010

Fw: Investor's Eye: Pulse - Inflation at 8.5%; Update - Infosys (PT revised to Rs3,461); MF - Top SIP fund picks

 

 
Investor's Eye
October 15, 2010] 
Summary of Contents

 PULSE TRACK

  • September inflation at 8.5%


STOCK UPDATE

Infosys Technologies 
Cluster: Evergreen
Recommendation: Hold
Price target: Rs3,461
Current market price: Rs3,070

Price target revised to Rs3,461

Result highlights

  • Earnings better than expectations but lacked positive surprise: Infosys Technologies (Infosys) reported a strong performance for Q2FY2011, with a 16.7% quarter on quarter (QoQ) growth in net profit to Rs1,737 crore, which was ahead of our expectation of growth of 15.7%. The company?s management has indicated at a strong resurgence in the demand environment with large deals coming back to the table in the first half of FY2011. Infosys won nine large transformational deals and nine global sourcing deals, with a total contract value of $865 million. However, the management voiced some caution mainly pertaining to regulatory changes in the US economy and the uncertainties related to currency volatility which could impact the earning performance in the medium term. Overall, we believe the earning performance for the quarter was quite impressive on the top line front; however it lacks any positive surprise that was needed to cheer the market mood. The one time dividend of Rs30 per share announced by the company is lower than what the market had expected.
  • Impressive top line growth: Infosys? Q2FY2011 top line growth is better than the Street?s as well as our expectations. For Q2FY2011, in US dollar terms, Infosys reported a revenue growth of 10.2% QoQ to $1,496 million, aided by a 7.2% volume growth and 2.8% pricing uptick. There was also a 0.74% contribution coming from favorable cross currency tailwinds. In Indian rupee terms, revenues were up 12.1% to Rs6,947 crore. In the last four preceding quarters, Infosys reported an average volume growth of 6.5%, which is testimonial to strong improvement in the demand cycle. 
  • Margins rebound, in line with expectations: Earnings before interest, tax, depreciation, and amortisation (EBITDA) margins for the quarter under review expanded by 170 basis points sequentially to 33.3%, which was in line with our expectations. The margin expansion was led by employee productivity, which improved by 3.2% QoQ on reported currency coupled with an increase in utilisation (250 basis points QoQ) and favourable impact of currency tailwinds. Going forward, the management has indicated at a margin decline of 130 basis points for FY2011, largely on account of currency headwinds. 
  • Impressive guidance upgrade in US dollar terms; EPS guidance remains intact in Indian rupee terms: On the back of improved business visibility and strong traction in the industry verticals, Infosys has increased its revenue growth guidance in US dollar terms to approximately 24-25% from the earlier guidance of approximately 19.1-20.9%. However, a sharp appreciation in the rupee vis-?-vis the US dollar in the last one month (close to 5%) has impacted the earning per share (EPS) guidance for FY2011, which remains largely unchanged at Rs117. Infosys has taken in to account a rupee-dollar exchange rate of Rs44.5 for FY2011E as compared to the earlier Rs46.5, which is a decline of 4.3%. Nevertheless, we expect Infosys to surpass its EPS guidance for FY2011 on the back of better volume visibility and stable pricing coupled with its impressive margin management mechanism. 
  • Upward tweak on estimates: Reason for a change in estimates
    • On the back of a sharp appreciation in the rupee vis-?-vis the US dollar in the last one month, we have revised our exchange rate assumption (Rs45.5 for H2FY2011 and Rs44 for FY2012).
    • With strong resurgence in the demand environment and strong hiring numbers, we have increased our volume estimates for FY2011E and FY2012E.
    • Increase in tax rates from 25% to 26% for FY2011E and FY2012E.
    • Consequently, we have revised our EPS estimate to Rs150.5 from the earlier Rs143.7 for FY2012E. For FY2011E, we have maintained our EPS estimate of Rs122.6, however we have increased our revenue estimates by 4.6% to Rs27,747.2 crore ($6,135.4 million) from the earlier Rs26,528 crore. 
  • Maintain Hold with revised price target of Rs3,461: At the current market price of Rs3,070, the stock trades at 25x FY2011E and 20x FY2012E earnings. We have revised upward our target price to Rs3,461 from the earlier Rs3,160 on account of an upward revision in our EPS estimate for FY2012. At our target price, the stock will be valued at 23x FY2012E earnings.

MUTUAL GAINS

Sharekhan's top SIP fund picks

We have identified the best equity scheme for SIP investment based on three parameters: Minimum corpus as indicated by at least 10% of the average category-corpus, the past performance as indicated by one, three and five year returns and risk returns ratios namely Sharpe, Information and Sortino. 

Sharpe indicates risk-adjusted returns, giving the returns earned in excess of the risk-free rate for each unit of the risk taken. The Sharpe ratio is also indicative of the consistency of the returns as it takes into account the volatility in the returns as measured by the standard deviation. 

Information ratio is one of the most important tools in active fund management. It is the ratio of active return (the return over the index return) to active risk annualised. A higher Information ratio indicates better fund manger. 

Sortino ratio is similar to Sharpe ratio, except it uses downside deviation. The upward volatility as measured by Sharpe ratio does not lead to losses. It is the downward volatility that leads to losses; hence the use of which doesn't discriminate between up and down volatility. So, higher the Sortino ratio, higher would be the effective return over a period of time.


Click here to read report: Investor's Eye

 

 

Regards,
The Sharekhan Research Team
myaccount@sharekhan.com 

Manage your newsletter subscriptions

 

Fw: Sharekhan's top SIP fund picks

 
 
Mutual Gains
[October 15, 2010] 
Summary of Contents

MUTUAL GAINS

Sharekhan's top SIP fund picks

We have identified the best equity scheme for SIP investment based on three parameters: Minimum corpus as indicated by at least 10% of the average category-corpus, the past performance as indicated by one, three and five year returns and risk returns ratios namely Sharpe, Information and Sortino. 

Sharpe indicates risk-adjusted returns, giving the returns earned in excess of the risk-free rate for each unit of the risk taken. The Sharpe ratio is also indicative of the consistency of the returns as it takes into account the volatility in the returns as measured by the standard deviation. 

Information ratio is one of the most important tools in active fund management. It is the ratio of active return (the return over the index return) to active risk annualised. A higher Information ratio indicates better fund manger. 

Sortino ratio is similar to Sharpe ratio, except it uses downside deviation. The upward volatility as measured by Sharpe ratio does not lead to losses. It is the downward volatility that leads to losses; hence the use of which doesn't discriminate between up and down volatility. So, higher the Sortino ratio, higher would be the effective return over a period of time.


Click here to read report: Mutual Gains

Regards,
The Sharekhan Research Team
myaccount@sharekhan.com

Fw: Sharekhan's top equity fund picks

 

 
Mutual Gains
[October 14, 2010] 
Summary of Contents

MUTUAL GAINS

Sharekhan's top equity fund picks

We have identified the best equity-oriented schemes available in the market today based on the following 5 parameters: the past performance as indicated by the one, two and three year returns, the Sharpe ratio and Information ratio.

Sharpe indicates risk-adjusted returns, giving the returns earned in excess of the risk-free rate for each unit of the risk taken. The Sharpe ratio is also indicative of the consistency of the returns as it takes into account the volatility in the returns as measured by the standard deviation.

Information Ratio is one of the most important tools in active fund management. It is the ratio of active return (the return over the index return) to active risk annualised. A higher Information Ratio indicates better fund manger.


Click here to read report: Mutual Gains

 

Regards,
The Sharekhan Research Team
myaccount@sharekhan.com

Fw: IPO Note: Coal India Ltd – ‘Maharatna in the making’ - Subscribe


 

IPO Note: Coal India Ltd – 'Maharatna in the making' - Subscribe

Price band Rs225-245

 

Coal India Ltd (CIL) is the best play to ride on the increasing coal deficit in the country. CIL enjoys a near monopoly with a dominant 82% share in domestic coal production and is the world's largest coal producing company. Being one of the lowest cost producers globally (US$16/ton) has enabled it to maintain healthy margins despite selling coal at a huge discount. We estimate OPM to expand 260bps over FY10-12 led by 1) 5.5% CAGR in volumes 2) improving product mix to align with market prices 3) cost savings measures and productivity improvement. These would drive earnings CAGR of 15.1% over FY10-12E.

 

At the upper band of Rs245, CIL would trade at 12.1x P/E and 6.4x EV/EBIDTA on FY12E. Employees and retail investors will be given the benefit of 5% discount on the final price. We believe CIL would trade at a premium, considering the lower earnings volatility, robust balance sheet and large resource base. We recommend 'Subscribe' to the issue with a fair value of Rs300.

 

 

 http://content.indiainfoline.com/wc/research/researchreports/Coal_India_151010.pdf