Fw: Investor's Eye: Update - BoI (First-cut analysis), Wipro (Results below expectations), Ipca Lab (PT revised to Rs346), TCS (PT revised to Rs1,161), Allahabad Bank (Upgraded to Buy)

 

Investor's Eye October 22, 2010]  Sharekhan www.sharekhan.com

Summary of Contents STOCK UPDATE Bank of India Cluster: Apple Green Recommendation: Hold Price target: Under review Current market price: Rs536 Q2FY2011 results: First-cut analysis Result highlights Results below expectations: Bank of India reported a net profit growth of 90.7% year on year (YoY) to Rs617 crore, aided by the low base of the previous year. On a sequential basis however, the performance was muted with the bank recording a 15% contraction in its bottom line. Net profit for the quarter stood below our as well as Street expectations due to higher than expected provisioning.  Strong NII growth: The net interest income (NII) was up a strong 26.1% YoY to Rs1,776.1 crore, supported by a healthy 22.6% Y-o-Y growth in the advances as well as a 24 basis points YoY improvement in the reported net interest margin (NIM) to 2.81%. On a sequential basis however, the reported NIM deteriorated by 8 basis points due to the 30 basis points sequential increase in the cost of funds.  Lower treasury income restricts non-interest income growth: The non-interest income dropped 13.5% YoY as a result of a 76.2% Y-o-Y contraction in the treasury income. However core fee income growth remained strong, registering a rise of 21.4% YoY. Provisions rise 36.7% sequentially: The provisions stood at Rs527.4 crore, up 36.7% sequentially. The same stood above our expectations as the bank made certain floating provisions in order to reach the provision coverage mandate of 70% (including technical write offs).  Asset quality improves sequentially: The asset quality of the bank improved sequentially with the rise in gross non performing assets (GNPAs) contained at 1.6% quarter on quarter (QoQ). On a relative basis, the bank saw a 7 basis points improvement in its %GNPAs to 2.64%, percentage net non performing assets (%NNPAs) also witnessed an improvement of 4 basis points sequentially to 1.14%.  Slippages pose significant concern: Despite the improvement in the asset quality, the continued high level of slippages poses some concern. Slippages for the quarter stood at Rs818.4 crore as compared to Rs618 crore for the previous quarter. Slippages stood higher sequentially, despite the bank having booked around Rs200 crore worth of GNPAs arising under the agri debt waiver in the previous quarter.  High slippages in restructured accounts: The bank restructured assets of around Rs346 crore during the quarter, taking the total restructured assets portfolio to around 5.5% of total advances. Of these around 20% have slipped into non performing asset (NPA) category.  Healthy business growth: The business growth of the bank was healthy with advances growing by 22.6% YoY. Meanwhile, the deposits too registered a healthy growth of 21.3% YoY with the current account and savings account (CASA) deposits as a percentage of domestic deposits expanding by 217 basis points YoY to 33.2%. Adequately capitalised: The capital adequacy ratio (CAR; as per Basel II norms) as on September 30, 2010 stood at 13.04% with tier-I CAR at 8.38%.  At the current market price of Rs536, the stock trades at 8.2x FY2012E earnings per share (EPS), 4.5x FY2012E pre-provisioning profit (PPP) per share and 1.5x FY2012E adjusted book value (ABV) per share. We will revert with a detailed analysis of the bank?s Q2FY2011 performance shortly.    Wipro Cluster: Apple Green Recommendation: Buy Price target: Rs528 Current market price: Rs450 Results below expectations Result highlights Performance below expectation: Wipro?s performance for Q2FY2011 has come below our expectations on the information technology (IT) services revenues and the margins front. For the quarter under review, IT services revenues were higher by 5.7% quarter on quarter (QoQ) to $1,272.8 million, but lower than our expectation of $1,287.4 million. On a sequential basis, volumes grew by 6.6% and realisation by 0.9% QoQ due to higher offshore share of revenues (up 50 basis points at 48.3%). On the other hand, IT services? earnings before interest and tax (EBIT) margins declined by 240 basis points QoQ to 22.2%, which is below our expectation of 23.6%. In rupee terms, the consolidated revenues were higher by 8.1% QoQ to Rs7,771.9 crore, which are marginally higher than our expectation of Rs7,654.2 crore, largely on the back of better than expected revenues in the product business, which was higher 28.5% QoQ to Rs1,069.3 crore. For Q3FY2011, Wipro has guided for an impressive 3.5%-5.5% sequential growth in revenues in US dollar terms to $1,317-$1,343 million.  For the quarter under review, Wipro?s reported net profit at Rs1,284.9 crore, declined by 2.5% QoQ, lower than our expectation of Rs1,361.9 crore. Lower than expected net profit performance was largely on account of a decline in the IT services margins coupled with higher than expected loss in foreign exchange (forex) to the tune of Rs41.4 crore against a forex gain of Rs45.8 crore in the sequential quarter. Decent volume growth, however lower than expectations: For Q2FY2011, IT services in US dollar terms were higher by 5.7% in reported currency terms to $1,272.8 million, which is below our expectation. On a constant currency basis, revenues were higher by 4.8% QoQ to $1,261 million. Revenue growth in the IT services was largely aided by sequential blended volume growth of 6.6%, which was below our expectation of 7.6% sequential volume growth. On the other hand, realisation remained stable during the quarter, with onsite realisation up by 1.1% and offshore by 0.1%. On a blended basis realisation was down 0.9% QoQ due to higher offshore contribution.  Margins performance disappoints: IT services? EBIT margins for the quarter were down 240 basis points QoQ to 22.2%, which is below our expectation of 23.6%. Margins were largely impacted by people related costs ie restricted stock units charge and promotions. For the quarter Wipro gave promotion to about 19,000 employees.  Impressive growth across verticals: During the quarter, Wipro saw broadbased sequential growth across the industry verticals led by retail and transportation (10%), healthcare (9.5%), telecom (7%), energy and utilities (6.9%), financial services (5.7%), manufacturing (3.6%) and technology (2%). Revenues from communication and media providers were flat. In terms of service offerings, the sequential growth was led by product engineering (17%), package implementation (6.5%), technology infrastructure services (6.2%), testing services (5.7%), application development and maintenance (4.7%) and business process outsourcing (2.6%). In term of geographies, APAC and other emerging markets led with a 12% sequential growth. Europe grew by 10.3% and the largest contributor Americas grew by 3.2%.  Management commentary remains optimistic: Wipro?s management indicated at a strong demand environment going forward with discretionary spending also kicking in. Also, the funnel is increasing at a steady rate quarter over quarter. During the quarter, Wipro won seven large deals on the back of a similar number of wins in the previous quarter. The growth would be led by US with demand across healthcare, retail, banking and energy and utilities segments. However, there is some slackness in the technology and telecom verticals. The company is seeing traction in system integration deals from India and the Middle East. The management expects pricing to increase next year.  Upward tweak in estimates: For the quarter gone by, Wipro?s performance was below our expectation on the IT services volume front and the margin front. In the last one year, Wipro has languished on the volume growth front as compared to its peers as the company?s key industry verticals like technology, manufacturing and telecom are still not entirely out of the woods and are still lagging behind the strong growth witnessed in the financial services sector where Wipro has lower contribution to revenues (27%), as compared to its peers. As the demand environment becomes broader going forward, we expect Wipro to catch up on the volume front in the coming quarters. We have marginally revised our earnings estimates for FY2011E and FY2012E. However we have increased our one year target multiple to 21x from 20x earlier on a rolling price earning (PE) basis. We maintain our 12 month target price of Rs528. At the current market price of Rs450, the stock trades at 20x FY2011 and 18x FY2012 estimated earnings. We maintain our Buy recommendation on Wipro.    Ipca Laboratories Cluster: Ugly Duckling Recommendation: Buy Price target: Rs346 Current market price: Rs298 Price target revised to Rs346 Result highlights Revenues in line, PAT below estimates: For Q2FY2011 Ipca Laboratories (Ipca) reported an adjusted net profit of Rs65.2 crore. The adjusted net profit grew by a mere 1.1% year on year (YoY) and was below our expectation of Rs75.1 crore, largely due to a higher than expected tax rate during the quarter. The total income of the company grew by 20.5% to Rs518.3 crore, which was in line with our estimate of Rs514.3 crore, essentially due to a 29.4% Y-o-Y growth in the formulations business. The operating profit margin (OPM) contracted by 100 basis points to 22.8% on account of higher marketing and freight costs (up 170 basis points). Anti-malarial sales led the growth: The 29.4% Y-o-Y growth in the domestic formulation business and a pick-up in the export of formulations (up 27.1% YoY; institution tender ?up 208%; generic?up 38%) elevated the sales. This was largely contributed by a 41% YoY growth in the anti-malarial formulation sales. The emerging markets showed good traction in H1FY2011?the Latin American market grew by 117%, Asia (up by 54%), Africa (up by 18%)?and the US market grew by 73%. The company remains confident on Russia/CIS sales in H2FY2011 and a 25% growth in international branded formulations for FY2011. USFDA approval for Indore SEZ to act as a trigger: The USFDA is expected to inspect the plant in February-March 2011 while the UK MHRA has completed the inspection in this quarter. Ipca would start supplies to Europe from December 2010. However the new revenue channels would start once the USFDA approval is received. Ipca has increased its capital expenditure (capex) guidance to Rs220 crore from Rs150 crore earlier in FY2011. Of this, Rs90 crore will be utilised towards the Sikkim facility while the rest would be utilised for building two new API plants in Ratlam. Raise estimates, maintain Buy: The Q2FY2011 results are below our estimates owing to higher than expected tax rate. However the revenues were in line with our estimates owing to strong contribution from both the domestic and export formulations largely aided by the robust recovery in the anti-malarial sales. We tweak our estimates to factor in the strong growth in the domestic formulations business and the higher tax guidance by the company. Our revised earning per share (EPS) estimates stand at Rs20 for FY2011 (vs Rs18.1 earlier) and at Rs23.8 for FY2012 (vs Rs22.6 earlier). At the current market price of Rs298, Ipca is attractively valued at 14.9x FY2011E earnings and 12.5x FY2012E earnings. Based on the strong earnings visibility from the export segment and the scale-up in the US business, we maintain our Buy recommendation on the stock with a revised price target of Rs346.    Tata Consultancy Services Cluster: Evergreen Recommendation: Hold  Price target: Rs1,161 Current market price: Rs1,046 Price target revised to Rs1,161 Result highlights Q2 results beat the most optimistic expectations of the Street: Tata Consultancy Services (TCS) has continued to surprise the market with its strong numbers for the past few quarters. In Q2FY2011, TCS surpassed the most optimistic expectations of the market on all fronts, with an 11.7% revenue growth in US Dollar terms to $2,004 million. The growth was aided by a phenomenal volume expansion of 11.2% quarter on quarter (QoQ). In rupee terms, TCS? revenues increased by 13% QoQ to Rs9,286.4 crore, aided by better rupee realisation during the quarter. For the quarter under review, TCS has reported a foreign exchange (forex) loss of Rs53.7 crore; as a result of this loss its net other income declined by 72% QoQ to Rs33.7 crore during the quarter. The net profit for the quarter was higher by 14.2% QoQ to Rs2,106.5 crore, around 6.7% higher than our expectations.  Strong volume momentum continues: In Q2FY2011, TCS? consolidated revenues in US Dollar terms grew by 11.7% on reported currency basis to $2,004 million, which was 4.8% ahead of our expectations. On a constant currency basis, the revenues were higher by 11% QoQ. The volume grew by 11.2% sequentially whereas the pricing declined by 26 basis points QoQ. TCS continues to show a strong volume growth. As a matter of fact, in the previous six quarters, TCS had reported an average sequential volume growth of 6.3%. The TCS management has indicated that the growth traction across geographies and industry verticals will be strong going forward. The net addition of more than 10,000 headcounts during the second quarter clearly indicates the visibility of its volume growth for the coming quarters is strong. Impressive margin performance continues: The company?s earnings before interest, tax depreciation and amortisation (EBITDA) margin for the quarter under review expanded by 70 basis ponts to 30%, which was ahead of our expectations of a 10-basis-point decline QoQ. Despite facing headwinds on account of people related cost (promotions and higher variable pays), which affected its margin by 166 basis points, TCS managed to expand its margin sequentially driven by productivity improvement and selling, general and administrative (SG&A) leverage coupled with currency tailwinds that added 103 basis points to the margin. Going forward, we have factored in a stable margin performance in our estimates with an expansion of 70 basis points in FY2011 and a marginal contraction of 20 basis points in FY2012. We expect a better top line growth and productivity improvement to compensate for the currency headwinds.  All-round growth across verticals: During the quarter under review, all the major industry verticals showed a strong growth momentum: Banking, financial services & insurance (BFSI; 10%), telecommunications (telecom; 12.6%), manufacturing (11.7%), retail and distribution (10.7%), transportation (15.3%), energies and utilities (45.6%), and life science and healthcare (9.6%). Among the geographies, the USA crossed $1 billion revenues in the quarter for the first time, growing by 9% sequentially. The Indian revenues grew by 25.7%, the Asia-Pacific revenues increased by 17.4%, the revenues from continental Europe grew by 14.2% and the revenues from the UK increased by 13.2%. The growth was across service lines with revenues from the infrastructure management services segment growing by 20.7%, the enterprise solution revenues up 17.4%, the engineering & industrial solutions revenues up 14%, the assurance services revenues up 15.2%, the business intelligence revenues up 15.8% and the business process outsourcing services revenues up 8.7%. The revenues from application development and maintenance grew by 9.1%, contributing 46.8% of the overall revenues.  Valuation and view: The management commentary on the outlook for TCS? business is quite positive and hints at a strong deal pipeline and robust demand environment going ahead. On the other hand, the management has also indicated that the discretionary spending and pricing may pick up by the latter part of the fiscal. We have revised upward our earnings per share (EPS) estimates for FY2011 and FY2012 by 9.4% and 10.2% respectively. We have now valued both TCS and Infosys Technologies (Infosys) on 23x FY2012E as against our earlier investment thesis of valuing TCS at a 10% discount to Infosys? target price/earnings (P/E) multiple, as we believe TCS will continue to outperform Infosys in the medium term. Consequently, we have revised upward our 12-month price target to Rs1,161 from Rs920 earlier. At our price target the stock would be valued at 23x FY2012E. We maintain our Hold recommendation on the stock.    Allahabad Bank Cluster: Cannonball Recommendation: Buy Price target: Rs300 Current market price: Rs252 Upgraded to Buy Result highlights Q2 bottom line higher than expected: Allahabad Bank?s Q2FY2011 performance was better than our expectations. The bank?s net profit grew by 20.7% year on year (YoY) to Rs402.6 crore against our expectation of Rs385.7 crore. The profit growth was mainly driven by a strong growth in the net interest income (NII) and a robust growth in the advances during the quarter. NIM expands QoQ: The NII for the quarter grew by a healthy 60.7% YoY to Rs969.2 crore. The NII growth was driven by an improved credit growth. Meanwhile the reported net interest margin (NIM) increased by 24 basis points sequentially. The sequential growth in the NIM was based on a 52-basis-point sequential increase in the yield on advances.  Robust business growth: The bank?s advances grew by a robust 38.9% YoY to Rs83,183 crore as against deposits, which grew at a relatively slower rate of 30.2% to reach Rs113,633 crore. This led to an increase in the credit-deposit ratio from 69.9% in September 2009 to 73.2% in September 2010. Healthy fee income: As expected, the performance on the non-interest income front was weak as the non-interest income declined by 14.8% YoY to Rs344.7 crore during the quarter. The non-interest income declined due to a 77.4% year-on-year (Y-o-Y) decline in the treasury income during the quarter. However, the fee income registered a strong growth of 17.0% YoY.  Higher cost-income ratio: The growth in the operating expenses was higher at 48.6% YoY. Consequently, the cost-to-income ratio for the quarter stood at 40.5%, higher than the previous year?s figure.  Depleted asset quality: The asset quality of the bank weakened on a sequential basis. The gross non-performing assets (GNPA) increased by 29.1% quarter on quarter (QoQ) to Rs1,470.3 crore and the net non-performing assets (NNPA) increased by 48% QoQ. In relative terms, the %GNPA increased to 1.77% from 1.50% in Q1FY2011. At the end of Q2FY2011 the restructured assets formed 3.6% of the advances book. The provisioning coverage ratio was at 81.02% at the end of the quarter. CAR @ 13.49%: The capital adequacy ratio (CAR) of the bank as at the end of Q2FY2011 stood comfortable at 13.49%, though the same was lower than the CAR of 13.62% recorded during the previous quarter. The tier-1 CAR was at 8.41% at the end of Q2FY2011.  Outlook: At the current market price of Rs252, the stock trades at 5.8x its FY2012E earnings per share (EPS), 3x FY2012E pre-provisioning profit (PPP) per share and 1.4x FY2012E adjusted book value (ABV) per share. In view of the strong and higher than expected Q2FY2011 results, the bank?s current valuations appear reasonable. We have tweaked our earnings estimates for the bank in line with its results and upgraded our recommendation on the bank to Buy with a revised price target of Rs300.     Click here to read report: Investor's Eye

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

 

MARKET OUTLOOK, NIFTY RANGE, FREE CALL & TRADING STRATEGY FOR 22.10.2010

MARKET today will open positive and remain choppy in the first half. It will become volatile in the second half and face technical resistance at 6150, 6180 and support at 6050, 6020. NIFTY will play in the range for some time trying to break-out. Today Select stocks in mid-cap space will outperform. Till nifty in this range midcap will fly around. Any close above 6180 with volume may see NIFTY testing earlier highs of 6220 levels.

Read the full post.....

Link : http://www.onlineequitytips.com/ashok-sharma/2010/10/22/market-outlook-nifty-range-free-call-trading-strategy-for-22-10-2010-www-ashoksharma-co-cc/

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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   

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

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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.

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]  Sharekhan www.sharekhan.com

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