Fw: Discontinuation of Futures and Options Contracts in the security TV18

 

Discontinuation of Futures and Options Contracts in the security TV-18 - June 20, 2011 Dear Customer Kindly note that Television Eighteen India Limited has informed the Exchange that the 'Record Date - June 22, 2011' for the purpose of determining the entitlement of the equity shareholders of Television Eighteen India Limited (Discontinued Company) to receive, pursuant to the scheme in the below manner. Seventeen Fully Paid Equity Share in ibn18 (Resulting company) of the face value Rs. 2/- each for every Twenty Five Equity Share of Television Eighteen India Limited of Rs. 5/- each. Thirteen Fully Paid Equity Share in Network18 (Resulting company) of the face value of Rs.5/- each for every Hundred Equity Share of Rs. 5/- each held by the shareholders in TV18. Taking the same into consideration there would be the following adjustments carried out in the Futures and Options contracts in the security. All existing contracts of TV18 i.e. contracts with expiry dates June 30, 2011, July 28, 2011 and August 25, 2011 will expire on June 20, 2011 and shall be finally settled at the relevant settlement price. The settlement price to be reckoned for the purpose of final settlement of existing contracts shall be the closing price of TV-18 in the Capital Market segment of NSE, on June 20, 2011. No futures and options contracts will be available in the underlying TV-18 for trading from June 21, 2011 onwards. This is pursuant to NSE Circular No. 059/2011 dated June 15, 2011. Please click here to view the detailed circular. 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); 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: (Erratum) Investor's Eye: Pulse - Monetary policy review; Update - Raymond; MF - Top equity mutual fund picks

 

 

Investor's Eye [June 16, 2011] Please see the attachment for details Sharekhan www.sharekhan.com

In the Viewpoint report on Raymond on the page 4 of the Investor's Eye dated June 16, 2011, the chart titled "Branded vs Un-branded" erroneously shows the contribution of branded sales as 32% and that of unbranded sales as 68% in the company's revenue mix. The correct revenue mix is as follows: branded sales 68% and unbranded sales 32%. The error is regretted and has been rectified. Summary of Content PULSE TRACK Monetary policy review: RBI maintains hawkish stance, raises policy rates by 25 basis points VIEWPOINT Raymond Well placed to capitalise on domestic consumption play Strong brand, with dominant market share: Raymond is the oldest textile brand in India with a history spanning more than 85 years. Over the years through its quality focus approach and unique brand building initiatives (it has spent over Rs900 crore over the last ten years FY2002-11 over advertising the brand) the brand 'Raymond' has gained a unique mind share and brand recall amongst consumers. The testimony to the same is its market leadership status in the worsted fabric segment. Apart from the fabric segment, the brand Raymond also has its presence in the ready-to-wear (the apparel) segment. Besides the Raymond brand, the company possesses a bouquet of apparel brands (viz Park Avenue, Parx and ColorPlus) to name a few) that enjoy a leadership status in their respective categories. Robust distribution network, gaining strength day by day: Strong distribution is a key prerequisite for any consumer-led model and Raymond has created strong entry barriers for competitors in this regard. It has an enviable distribution set-up that is a blend of wholesalers, distributors, MBO touch points, exclusive brand outlets (EBO) and its own famous store brand, The Raymond Shop (TRS). The brand is present in more than 400 towns including class 1 to class 5 towns and cities, is retailed through an array of 1,600 MBOs and is present at over 18,000 touch points including the exclusive Raymond brands available in 739 own retail (590 TRS) stores and 149 exclusive brand stores. Since Raymond enjoys strong brand equity and recall, it has franchisees operating even out of tier-3, tier-4 and tier-5 cities.  Valuation and outlook: In FY2011, Raymond saw tremendous improvement in its financials with a strong top line growth of 22.3%. Further a strong turnaround in the business would lead to almost a three-fold increase in its profitability too. A branded play with a strong distribution franchisee, enhanced focus and operational earnings visibility, Raymond is trading at 10.4x our rough FY2013E earnings per share (EPS) of Rs37.1. This is attractive compared with the valuation of the other branded retail plays. Further, any development with regard to the Thane land (company possesses ~120 acres of land at the heart of Thane at Pokhran Road) in the form of either a joint development or a disposal would lead to value unlocking and provide significant cash to the company. On the wake of Raymond's penetration lead consumption play coupled with its strong brand equity and enchanced focus we are positive on the company. However, we do not have active rating and coverage on the stock. MUTUAL GAINS Sharekhan's top equity mutual fund picks Large-cap funds Mid-cap funds Multi-cap funds ICICI Prudential Focused Bluechip Equity IDFC Small & Midcap Equity ICICI Prudential Discovery Franklin India Bluechip HDFC Mid-Cap Opportunities Birla Sun Life Dividend Yield Plus Birla Sun Life Frontline Equity - Plan A DSP BlackRock Small and Midcap HDFC Equity Principal Large Cap IDFC Premier Equity Fund - Plan A Reliance Equity Opportunities Reliance Quant Plus Sundaram Select Midcap Mirae Asset India Opportunities Tax saving funds Thematic funds Balanced funds HDFC Taxsaver DSP BlackRock Natural Resources & New Energy HDFC Prudence Religare Tax Plan Birla Sun Life India GenNext HDFC Balanced Fidelity Tax Advantage UTI India Lifestyle Reliance RSF - Balanced ICICI Prudential Taxplan Fidelity India Special Situations Birla Sun Life 95 HDFC Long Term  Advantage HDFC Infrastructure Tata Balanced Fund Fund focus Principal Large Cap Fund IDFC Premier Equity Fund - Plan A Click here to read report: Investor's Eye

Regards, The Sharekhan Research Team myaccount@sharekhan.com   www.sharekhan.com to manage your newsletter subscriptions

 

Fw: Sharekhan's top equity mutual fund picks

 

Mutual Gains [June 16, 2011]  Sharekhan www.sharekhan.com

Summary of Contents MUTUAL GAINS Sharekhan's top equity mutual fund picks Large-cap funds Mid-cap funds Multi-cap funds ICICI Prudential Focused Bluechip Equity IDFC Small & Midcap Equity ICICI Prudential Discovery Franklin India Bluechip HDFC Mid-Cap Opportunities Birla Sun Life Dividend Yield Plus Birla Sun Life Frontline Equity - Plan A DSP BlackRock Small and Midcap HDFC Equity Principal Large Cap IDFC Premier Equity Fund - Plan A Reliance Equity Opportunities Reliance Quant Plus Sundaram Select Midcap Mirae Asset India Opportunities Tax saving funds Thematic funds Balanced funds HDFC Taxsaver DSP BlackRock Natural Resources & New Energy HDFC Prudence Religare Tax Plan Birla Sun Life India GenNext HDFC Balanced Fidelity Tax Advantage UTI India Lifestyle Reliance RSF - Balanced ICICI Prudential Taxplan Fidelity India Special Situations Birla Sun Life 95 HDFC Long Term  Advantage HDFC Infrastructure Tata Balanced Fund Fund focus Principal Large Cap Fund IDFC Premier Equity Fund - Plan A   Click here to read report: Top equity mutual fund picks   Regards, The Sharekhan Research Team myaccount@sharekhan.com

Fw: Daring Derivatives: Bulls retreat

Daring Derivatives [For June 16, 2011] Sharekhan www.sharekhan.com

Summary of Contents   DARING DERIVATIVES Derivatives Summary Nifty (June) futures? premium over spot Nifty reduced from 15.30 to 3.10 points and around 5.57 lakh shares were added in open interest. Total open interest in the market was Rs130,571 crore and Rs154 crore were reduced in open interest. Nifty call options added 24.44 lakh shares in open interest, whereas put options underwent a reduction of 24.35 lakh shares in open interest. Click here to read report: Daring Derivatives

Fw: Company Report - Tulip Telecom: ‘Enterprising growth’ – BUY

Tulip Telecom: 'Enterprising growth' – BUY

CMP Rs161, Target Rs213, Upside 32.6%

 

We spoke with Tulip Telecom CFO to get a better understanding of its Bangalore data centre (DC). Overall ~Rs9.3bn (~40% of Tulip Mcap) would be spent on the 0.9mn sq ft data centre in Bangalore over 3 years including Rs2.3bn upfront investment made by Tulip in previous fiscal. 

We peg the DCF-based equity value of Bangalore DC at ~US$200mn, which is in line with the value derived from the reported up to 30% dilution of DC subsidiary. Bangalore DC would report losses of just under US$10mn in FY12, its first year of operation but turn cash break-even in FY13 at 35% utilization. We refrain from adding the Bangalore DC value to our TP given the back-ended nature of revenues/profit. With a strong standing in data centre segment, Tulip would benefit from the estimated 12.5% cagr for third party data centres. Core MPLS VPN growth momentum should continue its robust showing. Reiterate BUY with a 9-mth TP of Rs213. 

 

Fw: Axis Bank Ltd: ‘Concerns priced-in’ – BUY

 

Axis Bank Ltd: 'Concerns priced-in' – BUY
CMP Rs1,246, Target Rs1,500, Upside 20.4%

System outperforming loan growth to continue over FY11-13
After delivering industry-best loan growth of 36% in FY11, Axis Bank has guided to outgrow system by 30-40% in FY12. Based on an internal estimate of 18% growth for the system, bank expects its credit growth at 24-25%. The credit growth estimate is tailored around its target of 25%+ CASA growth. Significant improvement in branch productivity should drive strong CASA accretion, increasing its share in total deposits. C/D ratio would remain elevated with deposit growth expected to be slightly lower than advances. We build-in 25% loan CAGR for Axis Bank over FY11-13. In Q1 FY12, loan book may shrink sequentially with some short-term loans running-off.

NIM to moderate further in Q1 FY12; FY12 guidance at 3.25-3.5%
Bearing the brunt of its heavy reliance (~40%) on wholesale deposits, Axis Bank's NIM contracted sharply in Q4 FY11. Margin is expected to further moderate in the current quarter despite material lending rate increases in recent past. About 70% of advances are linked to Base Rate and BPLR. Bank anticipates NIM to stabilize in Q2 FY12 on expectations of re-pricing of current peak-cost deposits at lower rates. Margin is expected to recover gradually over Q3-Q4 FY12. For full-year FY12, Axis Bank has guided for NIM range of 3.25-3.5% capturing the extreme liquidity scenarios.

Asset quality to remain strong; capital raising likely in FY13
GNPL ratio is anticipated to be stable with slippages run-rate expected below Rs3.5bn/quarter in the medium-term. Further, bank does not foresee any large restructuring in short-term except for the Andhra Pradesh-based MFI exposure (~0.4% of overall book). The impact of enhanced provisioning levels is likely to be marginal as provisioning by Bank has been conservative. Credit charge for FY12 is estimated at 0.9%, 10bps lower yoy. With Tier-1 ratio near 9%, bank plans to raise equity capital during CY12 that would suffice 2.5-3 years of growth. We broadly estimate equity raising of Rs60-70bn during early FY13.

Valuation attractive post recent price correction
We believe that recent underperformance (despite strong Q4 FY11 results) has made Axis Bank's valuation attractive both in absolute and relative terms. The impact of spike in wholesale rates, which has been the key concern, is largely factored in current valuation (2x FY13E P/BV). Rather, stock would have a higher delta to any signs of rates easing. We also notice that HDFC Bank's valuation premium over Axis has expanded steeply in recent past and currently stands near 2-year high. Recommend BUY on Axis Bank with a 9-month price target of Rs1,500.

Fw: Sector Report: India Natural Gas – ‘Fuel for Growth’

 

India Natural Gas – 'Fuel for Growth'

India's primary energy basket is on the threshold of witnessing a quantum jump in contribution from natural gas. While the demand for gas has always been strong in the country, availability of transmission infrastructure and regulatory issues has restricted supply matching up to the demand growth. However, the medium term outlook has improved considerably with 1) increased availability of gas; both domestic and imports, 2) huge investments in gas pipeline infrastructure and 3) fast pace implementation of related reforms.

 

These developments, we believe, have created investment opportunities across the natural gas value chain. Pricing reforms are expected to be beneficial to both producers and LNG importers. While producers will gain from better realizations, LNG importers will benefit from correction in the pricing disparity (making LNG more affordable vis-à-vis domestic gas). Higher gas availability will lead to a jump in volumes for transmission companies. This coupled with stable tariffs would translate into better earnings visibility. City gas companies, which provide last mile connectivity for consumption by industries and vehicles, would also gain from increase in supplies and widening pipeline infrastructure of transmission companies.

 

We recommend investors to BUY GAIL, GSPL, Indraprastha Gas and Petronet LNG.

 

GAIL – BUY

CMP Rs451, Target Rs525, Upside 16.5%

±       Doubling gas transmission capacity in two years

±       Exposure to city gas projects and E&P fields value accretive

±       Huge expansion planned for the petrochemical segment

±       Subsidy an overhang, but relatively better placed

 

GSPL – BUY

CMP Rs97, Target Rs113, Upside 16.3%

±       Expansion of transmission capacity to serve rising demand in Gujarat

±       Three cross-country pipelines to add value

±       Tariffs to remain flattish post PNGRB authorization

 

Indraprastha Gas – BUY

CMP Rs370, Target Rs409, Upside 10.5%

±       Improving CNG economics and wider availability to drive demand in NCR region

±       Under-penetration to propel demand for PNG

±       Pricing power to enable margin sustenance

 

Petronet LNG – BUY

CMP Rs141, Target Rs162, Upside 14.9%

±       Near term LNG demand to remain strong on lower production at KG-D6 field

±       Expanding capacities at opportune time

±       Regasification tariffs would continue to rise

 

 

Fw: Investor's Eye: Pulse - Inflation at 9.06%; Update - Patels Airtemp (PT revised to Rs103); Viewpoint - Sun Pharma Advanced Research Co (Sparkling outlook for the long term)

 

 

Sharekhan ValueGuide (Gujarati) [For June 2011] Sharekhan www.sharekhan.com

Please find the Sharekhan ValueGuide (Gujarati) for June 2011.     Click here to read report: ValueGuide (Gujarati)

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

 

Fw: NPS - Safety for the future & tax free benefit.

 

Dear Investor,

 

Greetings from Integrated.

 

We invite your kind attention to salient features of NPS and also to an important amendment in the Income Tax benefit for NPS. 

 

Please click here for a detailed presentation.

 

There are two important reasons for every person (18-55 years) to open a NPS account-(1) to enjoy a secured future by way of pension income and (2) to get "tax free" benefit wherever possible. 

As per the new provisions of the Income Tax Act, when an employer directly makes a contribution to the National Pension System of the employees, (up to 10% of the basic and DA subject to a maximum of Rs.1 lac), it is fully tax free at the hands of the employee. This is over and above the overall limit of Rs.1 lac provided under section 80C, 80CCC and 80CCD(1).

In short, contribution from the employer is practically a tax free benefit in the hands of the employee. You can very well contact your employer & request them to consider this option at least whenever there is a performance linked incentive or bonus.

The following table is an indication of the likely money available at the time a person reaches 60 years (Rate of return assumed at 10%) on various savings levels.     

Age at the time of joining	Future savings (in years)	Total Contribution to NPS per annum
		10000	20000	30000	40000	50000
		(app. Maturity value in lacs)
25	35	31.64	63.28	94.92	126.56	158.2
30	30	18.84	37.68	56.52	75.36	94.2
35	25	11.06	22.12	33.18	44.24	55.3
40	20	6.33	12.66	18.99	25.32	31.65
45	15	3.45	6.9	10.35	13.8	17.25
50	10	1.7	3.4	5.1	6.8	8.5
55	5	0.65	1.3	1.95	2.6	3.25

Needless to mention, you can share this with your employee son / daughter in the long term interest of their peaceful retired life.

Kindly contact us for more information & also for the procedures regarding opening of NPS account.

For list of branches visit http://www.iepindia.com/contact.aspx