Fw: Investor's Eye: Update - CMC, NIIT Technologies

 

Investor's Eye [July 16, 2013]  Sharekhan www.sharekhan.com

Summary of Contents     STOCK UPDATE CMC Recommendation: Buy Price target: Rs1,500 Current market price: Rs1,302 Price target revised to Rs1,500  Result highlights  Performance below expectations: For Q1FY2014, CMC has reported a 7.1% drop in its revenues to Rs486.6 crore, which is lower than our expectation of Rs513.4 crore. The decline in the top line was higher than expected because of a slower than expected growth in the system integration (SI) segment during the quarter. Despite the rupee's tail wind, the SI business grew by only 7.8% quarter on quarter (QoQ) in Q1FY2014 after a 13.9% sequential decline in Q4FY2014. On the other hand, the performance of the customer service (CS) business (whose revenues fell by 38% QoQ) and the information technology enabled services (ITES) business (whose revenues grew by 4.3% QoQ) was broadly in line with our expectations.  The revenues of the services business grew by 5.3% QoQ (90% of the total revenues as against 79.4% in Q4FY13) whereas the revenues of the equipment business plunged by 55% QoQ (after a strong growth of 283% QoQ in Q4FY2013; 10% of the total revenues). The revenues from the international business rose by 8.7% QoQ to Rs314.1 crore driven by currency tail winds whereas the domestic revenues dropped by 26.5% to Rs172.5 crore on account of a fall in the revenues of the hardware business. Margins remain stable; management expects improvement in coming quarters: The operating profit margin (OPM) remained broadly stable at 15.8% against 15.6% in Q4FY2013. The quarter's margin performance was below our expectations (we had expected an OPM of 16.8%). The underperformance can be attributed to a higher than expected increase in the sub-contracting cost (which rose by 18.8% QoQ driven by the execution of a higher number of onsite projects) and a lower than expected contribution from the high-margin lease rental segment. Despite improvement in the currency tail wind, the management has maintained its margin corridor of 16-17% for FY2014.  Net income declined by 13% QoQ: The quarter's other income was significantly higher (up 148% QoQ) at Rs10.1 crore on account of a sale of property that generated Rs4.2 crore during the quarter. Further, the effective tax rate rose by 1,200 basis points QoQ to 34.4% on account of Rs9.6 crore dividend distribution tax on the dividend received from CMC Americas. The net income for the quarter fell by 13% QoQ to Rs53.1 crore, which is lower than our expectation of Rs64 crore.  Valuation: A slower than expected ramp-up in the performance of the key revenue-earning segments (SI and ITES) has upset CMC's growth trajectory tapering off its year-on-year (Y-o-Y) revenue growth rate to single digits in Q1FY2014 (the lowest in 12 quarters). The delay in improving in the revenue mix (onsite revenues still contribute over 75% of total revenues) has led to cost pressure and restricted any meaningful improvement in the margin. Nevertheless, the company's management indicated this quarter's performance was a quarterly aberration. It expects the growth momentum to improve in the quarters ahead and the revenue growth to be higher than the industry average in FY2014. In view of the lower than expected performance and increased tax rate assumptions, we have reduced our earnings estimates for FY2014 and FY2015 by 9.6% and 9.2% respectively. Consequently, we have reduced our price target to Rs1,500. From a longer-term perspective, we remain positive on CMC, given its strong earnings visibility led by its "joint go to" market strategy with Tata Consultancy Services, the successful traction in its products and solutions, and its proven expertise in the projects of the domestic government. We maintain our Buy rating on the stock with a revised price target of Rs1,500.    NIIT Technologies Recommendation: Hold Price target: Rs305 Current market price: Rs261 Soft quarter  Result highlights Soft quarter: For Q1FY2014, the numbers of NIIT Technologies Ltd (NTL) were below our expectation on both the top line and bottom line front. Though seasonally Q1 has always been a soft quarter for NTL, but overall the headline numbers coupled with an increase in the DSO days do not augur well for re-rating the company's stock, at least in the near term. The revenues were up by 0.9% quarter on quarter (QoQ) to Rs541.9 crore, which is lower than our expectation of Rs549.9 crore. Excluding hardware revenues of Rs59 crore, the revenues were down by 5.3% QoQ to Rs482.9 crore. The operating profit margin (OPM) for the quarter declined by 200 basis points to 14.4% (which is tad lower than our estimate of 14.9%). The decline in the margin was largely attributed to the annual wage hikes effective during the quarter. The management expects the margin to improve in the coming quarters. For the quarter, the other income stood at Rs20.6 crore as against a loss of Rs1.4 crore in Q4FY2013. The significant jump in the other income was on account of Rs17 crore foreign exchange (forex) translation gains against a loss of Rs5.9 crore in Q4FY2013. Further, the effective tax rate has gone up substantially to 35% attributed to the dividend distribution tax of Rs9.4 crore. The net income for the quarter was down by 6% QoQ to Rs53.2 crore (our estimate was Rs56.9 crore). Working capital intensifies, DSO days touched 98 days: NTL's focus on safeguarding the revenue predictability with increasing contribution from the government business (13% of the total revenues, up from 8% in Q1FY2013) has started taking toll on its cash flows. For the quarter, the DSO days went up by 16 days to reach 98 days at the end of the quarter (highest in the last 11 quarters). Thus, the cash and cash equivalents declined by Rs85 crore QoQ to Rs247.9 crore. The management acknowledged that the higher government contracts have impacted the DSO days. Further, with two government contracts on anvil (AP Finance, already started, and Airports Authority of India [AAI], to commence from Q2FY2014), the pressure on DSO days is unlikely to subside in the near term. Though the management expects that the newer management projects will have a better billing cycle but we remain sceptical on that.  Valuation: Absence of any meaningful improvement in the earnings performance coupled with a changing mix of business is holding up the case for re-rating of NTL. Though we still see NTL among the few mid-cap information technology (IT) companies, which have rich potential for earnings improvement, the wait for improvement seems to be getting longer than anticipated earlier. We have revised our currency estimates and tweaked our earnings estimates for FY2014 and FY2015E. At the current market price (CMP) of Rs260, the stock is trading at 6.2x and 5.6x its FY2014 and FY2015 earnings estimates respectively. We maintain our Hold rating on the stock with a price target of Rs305.    Click here to read report: Investor's Eye

Fw: INVEST Online in Secured NCD Shriram Transport Finance Limited Company to earn interest upto 11.15% p.a*

 

Shriram Transport Finance Company Limited

Shriram Transport Finance Company (STFC) was established in 1979 and has a long track record of over three decades in the commercial vehicle financing industry in India. STFC has been registered as a deposit-taking NBFC with the RBI since 4th Sept '2000 under Section 45IA of the Reserve Bank of India Act, 1934. STFC is a part of the Shriram group of companies which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products.

Why to invest in Shriram Transport Finance Company Limited (NCD) » The NCDs offer an opportunity to lock in at an interest rate of 11.15% p.a. for 5 years. » Healthy credit rating of '(CARE) +' and 'CRISIL AA/Stable'. » The bonds would be listed on both NSE & BSE to provide liquidity to the investors. » Tax will not be deducted at source from interest payable on such NCDs held by the investor (in case of resident Individuals and HUFs for NCDs held in physical form), if such interest does not exceed Rs.5,000 in any financial year. » Wealth Tax is not levied on investment in Bonds under Section 2 (ea) of Wealth-Tax Act,1957. » As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;

INVESTMENT DETAILS (For details, please refer Issue related all documents) Series I II III IV V Face Value/Issue Price (`) per NCD Rs. 1,000 Rs. 1,000 Rs. 1,000 Rs. 1,000 Rs. 1,000 Frequency of Interest Payment A n n u a l A n n u a l Monthly Not Applicable Not Applicable Coupon (% Per annum) (A) 9.65% 9.80% 9.40% Not Applicable Not Applicable Additional Incentive on Coupon (% Per annum) on Any Record Date -(B) NCD Holders who are Individuals NCD Holders who are Non Individuals NCD Holders who are Individuals NCD Holders who are Non Individuals NCD Holders who are Individuals NCD Holders who are Non Individuals Not Applicable Not Applicable 1.25% Nil 1.35% Nil 1.23% Nil Aggreate of Coupon and Additional Incentive on any Record Date (% per annum)= (A) + (B) NCD Holders who are Individuals NCD Holders who are Non Individuals NCD Holders who are Individuals NCD Holders who are Non Individuals NCD Holders who are Individuals NCD Holders who are Non Individuals Not Applicable Not Applicable 10.90% 9.65% 11.15% 9.80% 10.63% 9.40% Tenor Thirty Six Months Sixty Months Sixty Months Thirty Six Months Sixty Months Minimum Application (No.) 10,000/- (10 NCDs) across all series taken individually or collectively

Disclaimer: The information contained herein is confidential and is intended solely for the addressee(s). Any unauthorized access, use, reproduction, disclosure or dissemination is prohibited. This report is for information purposes only and does not constitute or form part of and should not be construed as, any offer for sale or subscription of or any invitation to or advertisement for offer to buy or subscribe for any security/bonds of Shriram Transport Finance Company Limited ("STFC/The Company") and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. This report has been prepared from the publicly available information.. The information and opinions on which this communication is based have been complied or arrived at from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, correctness and are sub! ject to change without notice. IIFL - India Infoline Ltd. and/ or its clients may have positions in or options on the securities mentioned in this report or any related investments, may affect transactions or may buy, sell or offer to buy or sell such securities or any related investments. Neither IIFL – India Infoline Ltd. nor any of its affiliates shall assume any legal liability or responsibility for any incorrect, misleading or altered information contained herein. The material/ charts contained in this document are based on information that is publicly available, including information developed in-house. The report / recommendations contained in the report are the personal views and opinions of the author and are not to be construed as advice. IIFL or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. The recipient alone shal! l be responsible for any decision taken on the basis of this report. A ny person who subsequently subscribes for any bonds issued by the Company must rely solely on the publicly available information including the Prospectus issued in connection with the Issue on the basis of which alone subscription for the debentures may be made. The recipients of this report should rely on their own investigations; seek appropriate professional advice, before dealing and or transacting in any of the products/ instrument referred to in this report. Products/ Instruments are subject to market risks and returns may fluctuate depending on various factors. Past performance of the products/instruments does not indicate the future prospects & performance thereof. Such past performance may not be sustained in future. The investors shall obtain, read and understand Prospectus and should pay particular attention to the section of the Prospectus entitled "Risk Factors".and/or any other relevant.

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Customer care: 022 40071000 cs@indiainfoline.com Call Trade line 022 39440000 TT Helpdesk 022 41514151

INDIA INFOLINE LTD (Regd. Office) - IIFL House, Sun Infotech Park, Road No. 16V, Plot No. B-23, MIDC, Thane Industrial Area, Wagle Estate, Thane - 400 604. Tel: (91-22) 2580 6650 • Fax: (91-22) 2580 6654 SEBI REGN NO.: BSE (Cash) INB 011097533, BSE (F&O) INF 011097533, NSE (Cash) INB 231097537, NSE (F&O) INF 231097537, NSE (CDS) INE 231097537, DEPOSITORY: IN DP NSDL 185 2000, IN DP CDSL 352 2006 | AMFI REGN NO.: ARN-47791, MCX-SX: INB/INF 261097530 , INE261097537, India Infoline Commodities Limited: NCDEX: NCDEX-CO-04-00378 & MCX:10470

Fw: Equity Eagle Eye: Holding on to 6K

 

 

Equity Eagle Eye [For July 16, 2013] Sharekhan www.sharekhan.com

Summary of Contents   PUNTERS CALL Holding on to 6K The Nifty closed in the positive today, up 21 points at 6030. Over the next couple of days it is expected to head higher till 6060. In this period the key support will be at 5977 and resistance will be at 6060. Other technical observations On the daily chart the index is trading above the 20-daily moving average (DMA) and the 40-DMA, ie 5798 and 5859 respectively. The momentum indicator is trading in positive mode. On the hourly chart, the Nifty is trading above the 20-hourly moving average (HMA) and the 40-HMA, ie 5977 and 5932 respectively, which are crucial intra-day levels. The hourly momentum indicators have turned negative. The market breadth was positive today with 701 advances and 469 declines on the National Stock Exchange.  SMART CHART CALLS   MOMENTUM CALLS     DAY TRADERS HIT LIST   Click here to read report: EagleEye

Fw: Investor's Eye: Update - Sun Pharmaceutical Industries, Eros International, Insurance

 

 

Investor's Eye [July 11, 2013]  Sharekhan www.sharekhan.com

Summary of Contents   < /font>   STOCK UPDATE Sun Pharmaceutical Industries Recommendation: Buy Price target: Rs1,190 Current market price: Rs1,095 Price target revised to Rs1,190; maintain Buy  Key points Sun Pharma to gain from shortage of Doxycycline in US market: Anti-biotic drug Doxycycline is one of the drugs listed under the shortage category in the USA. Recently, Hikma Pharmaceuticals (Hikma) has revised its revenue forecast showing that Doxycycline will add at least $100 million of incremental revenue with a potential gain of $60 million in the incremental profits. This has relevance for Sun Pharmaceutical Industries (Sun Pharma) as it also becomes one of the suppliers for Doxycycline after acquiring the generic business of URL Pharma in the USA. Last quarter, URL Pharma had taken a price hike for Doxycycline in the USA, following the shortage of drugs, while Hikma's production of Doxycycline was halted due to a warning letter by the US Food and Drug Administration (USFDA). Though Hikma's production of Doxycycline is normalised now and therefore it hopes to gain significantly from this drug, Sun Pharma is also expected to gain both in terms of revenues and healthy margin. We can expect nearly $60-80 million (we have built in $80 million) revenues from this product with the operating profit margin (OPM) at approximately 50 % in FY2014. Doxycycline will make up for the loss related to Lipodox/Doxil: Sun Pharma has got an opportunity to supply Doxil (liposomal doxorubicin, sold as Lipodox by Sun Pharma) in the USA during FY2013 after getting fast-track approvals from the USFDA due to shortage of drugs. We estimated nearly $250 million of revenues from this product with a very high margin due to limited competition. However, since the resumption of supplies by innovator Janssen Pharmaceuticals (Janssen Pharma) and generic approvals in February 2013, Sun Pharma has started losing market share in Lipodox. Based on the retail sales data (in US dollar terms) for May 2013, the market share of Sun Pharma's Lipodox declined by 14% month on month (MoM; market share stood at 16.1%). However, the generic version of Lipodox recorded a market share of 32.7% (up 17.7 basis points MoM). We believe Sun Pharma would lose more on the margin front due to increased competition in Lipodox. However, with the ramp-up in Doxycycline, Sun Pharma would be able to materially make up for the loss related to Lipodox. We have revised earnings estimates and price target: We have revised our earnings estimates upwards by 12.9% and 3.5% for FY2014 and FY2015 to factor the upside from Doxycycline and currency benefits. Accordingly, our price target gets revised up by 6% to Rs1,190 (which implies 26x estimate earnings per share [EPS] of FY2015). We maintain Buy rating on the stock.   Eros International Recommendation: Buy Price target: Rs240 Current market price: Rs139 Better days ahead  We recently met Mr. Kamal Jain, group chief financial officer of Eros International Media Ltd (EIML), to discuss the current state of the business environment and the future outlook. The management indicated that FY2014E would be better for the earnings performance after a soft performance in FY2013 (when EIML's revenues had grown by 13% and net profit had grown by 4.7%). The optimism was driven by some big-ticket releases in FY2014E ("Kochadaiyaan", "Ram Leela" and "Rambo Rajkumar" among others) coupled with the company's proven track record of making high-margin low-budget movies (recent success "Raanjhanaa", coming up "Bajate Raho").  It further shared that better monetisation of the movie slate and HBO partnership is expected to aid margin improvement (the HBO deal has the potential net profit margin of 80%). The progress on the HBO partnership has been on expected lines and the deal is expected to contribute around Rs3-4 crore of revenues in FY2014E. On the Q1FY2014 performance, the management said that the revenue and earnings growth would be driven by a much better than expected performance by the company's low-budget film, "Raanjhanaa". The company also released some other successful movies like "Yeh Jawaani Hai Deewani" (overseas rights) and "Go Goa Gone" (which enjoyed average success) during the quarter. FY2014E to be better than FY2013: The management indicated that FY2014E would be better in terms of the earnings performance after the soft performance of FY2013 (when the company's revenues had grown by 13% and net profit had grown by 4.7%). The optimism was driven by some big-ticket releases in FY2014 ("Kochadaiyaan", "Ram Leela" and "Rambo Rajkumar" among others) and the company's proven track record of making high-margin low-budget movies (the recent hit "Raanjhanaa", coming up "Bajate Raho"). EIML has some key movies lined up for release in FY2014 like "Kochidayaan", which is expected to be released around Diwali. The company has already begun the process of monetising its key movie, "Kochidayaan" (the company has sold its satellite and music rights), and has received a very healthy response to the movie's distribution rights as well. The company is confident of releasing all its key films on schedule in FY2014. Further, it has planned to spend Rs700 crore in FY2014 out of which Rs150 crore will be on content. With the increasing penetration of the Internet (on PCs and mobile), the advent of the 4G technology and the partnership with Viacom 18's Colors channel, the company expects the monetisation of its film library to improve gradually in FY2014E and FY2015E.  Valuation: In the last six months EIML's stock price has corrected by close to 34%, led by a weak quarterly performance and delays in the planned release of the big movie "Kochadaiyaan". Further, the lower disclosure level of the company's financials has also led to apprehension among investors. The management has assured that after the New York Stock Exchange (NYSE) listing of Eros Plc. (some time in October-November 2013), the disclosure level will improve significantly. The management expects advances of close to Rs1,000 crore to come to EIML from Eros Plc. (parent) after the listing on the NYSE. With earnings improvement on cards and the company's strategy on low-budget high-margin movies turning to be successful, we expect the stock's performance to follow suit. At the current level the stock is trading at an inexpensive valuation of 6x FY2015E earnings. We reiterate our Buy recommendation on EIML with a price target of Rs240 for a 12-month time frame.     SECTOR UPDATE Insurance  Slowdown persists The growth in the annual premium equivalent (APE) of the life insurance industry declined for the eleventh consecutive month in May 2013 as it declined by 23.6% year on year (YoY). This was largely contributed by the Life Insurance Corporation of India (LIC), which showed a decline of 32.0% YoY in the APE. On the other hand, the private players reported a decline of 7.2% YoY in May, with Aviva Life (down 42.5% YoY), HDFC Life (down 38.1% YoY) and Birla Sun Life (down 31.2% YoY) posting the steepest decline in the APE. However, Reliance Life Insurance (Reliance Life; up 165.5% YoY) and Kotak Life Insurance Company (Kotak Life; up 138.1% YoY) posted a significant increase in the APE on a year-on-year (Y-o-Y) basis. On a year-to-date (YTD) basis (April 2013-May 2013), the private players fared relatively better as their APE declined by mere 4.1% YoY as compared with a 28.9% Y-o-Y decline by the LIC and a 21.1% Y-o-Y decline by the industry. The growth (April 2013-May 2013) in the APE of the private players was mainly led by players like Kotak Life (up 100.9% YoY) and Reliance Life (up 88.8% YoY). Max Life Insurance (Max Life) also reported a healthy growth of 15.6% YoY in its APE. On a month-on-month (M-o-M) basis, the APE for industry grew by 28.5% with the private players and LIC showing a growth of 51.9% and 16.1% respectively. On an M-o-M basis, mere eight out of the 24 players posted a decline in their APE. Companies like Tata AIA Life Insurance Company (Tata AIA), MetLife and Max Life reported a decline of 15.6%, 10.4% and 8.3% respectively in their APE. The market share of the private players in May 2013 improved by ~725 basis points to 41.0% (LIC, 59.0%) compared with 33.8% in May 2012. During the period under review, the companies like Reliance Life, Kotak Life and Max Life turned out to be major gainers as their market share improved by ~440, 190 and 85 basis points respectively. Outlook Slowdown persists in the sector and it's been almost a year since the sector has seen a positive growth (Y-o-Y basis). Compared with a growth expectation of about 10% at the beginning of the fiscal, we now expect the premium growth to be flattish in FY2014. The IRDA is likely to come up with guidelines on bankassurance over the next couple of months, which could help the sector. Besides that, the transition towards the newer regulations (proposed for traditional products) will continue to impact the premium growth.    Click here to read report: Investor's Eye   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.

Fw: ValueGuide: The "R" factor

 

 

Sharekhan ValueGuide [July 08, 2013]  Sharekhan www.sharekhan.com

Summary of Contents    EQUITY FUNDAMENTALS THE STOCK IDEAS REPORT CARD FROM SHAREKHAN'S DESK The "R" factor  The rupee crossed the psychological mark of 60 against the dollar last month. The local currency's fall to an all-time low was largely driven by the strengthening of the US Dollar against all the other major currencies. But the currencies of countries with relatively a high current account deficit, like India, South Africa and Mexico, were among the worst affected globally. On the other hand, the currencies of countries with a current account surplus, like Indonesia and Singapore, managed to sail through with a limited damage. MARKET OUTLOOK It's more global than local this time around  Volatility picks up as Ben pulls the plug and cues turn negative in China, Europe: The unexpected move by the US Federal Reserve to begin tapering of the monetary stimulus under the quantitative easing (QE) programme jolted the financial markets globally. As part of the knee-jerk reaction to the Fed's statement a scramble began for unwinding of the leveraged dollar carry trades which perked up the bond yields, strengthened the dollar and led to the withdrawal of money from risky assets. India also suffered its share of collateral damage with the sudden outflow of $7.5 billion from the Indian debt market and the freefall of the rupee beyond the important psychological barrier of Rs60 to the dollar. The deterioration in the Chinese economic data and the re-emergence of issues in some of the troubled European nations added to the uncertainty in the equation. Rupee dives but creates room for radical policy moves: The global uncertainty and the steep depreciation in the rupee have galvanised the government into taking policy decisions on some pending critical issues. The cabinet committee has approved the new gas price formula that makes investment in oil & gas exploration much more attractive, taken steps to address the availability of coal for the power sector and is looking at hiking foreign direct investment (FDI) limits in certain sectors. Therefore, by hiding behind the compelling circumstances and due to the growing differences within the opposition parties the government may be able to push some pending bills in the forthcoming parliamentary session. Though the government has passed the food bill ordinance, hopefully the pressure on the rupee would act as a grim reminder to the government to maintain fiscal prudence rather than focus on giveaways under social schemes during the election year. RBI to retain cautious monetary stance; corporate earnings to remain muted: Despite the moderation in the inflation rate, the Reserve Bank of India (RBI) is likely to retain its cautious view in the light of the inflationary pressures resulting from the rupee's depreciation. We do not expect it to cut the key policy rates or take any measure to ease liquidity during the policy review meet at the end of July. Thus, the cyclical uptick in the economy could be more sluggish than expected or get delayed due to the uncertainty caused by external factors. The earnings season would be rather lacklustre with the expectations of a marginal decline in the cumulative earnings of the Sensex in Q1 of FY2014 and the growing risk of further downgrades in the FY2014 earnings estimates.  Nifty likely to fluctuate in a broader range: The global events pushed the market towards the lower end of its multi-month trading range of 5600-6100; however, the benchmark indices are stabilsing after the initial knee-jerk reaction. In the immediate term, the continued pressure on the rupee remains the key risk to inflation, might delay monetary easing by the RBI and put further stress on already stretched corporate balance sheets. However, the valuation is quite reasonable with a one-year forward price/earnings (PE) multiple of 13.8x, which is at 5% discount to the long-term average valuation of the Sensex. Consequently, the benchmark indices are likely to consolidate within a broad range though with increase in volatility.  SHAREKHAN TOP PICKS Sharekhan Top Picks  STOCK UPDATES Eros International: Media Price target reduced to Rs240 Gateway Distriparks: Norwest Venture Partners to invest in Snowman Logistics Godrej Consumer Products: Management interaction note HCL Technologies: Upgraded to Buy with increased price target of Rs900 Hindustan Unilever: Book some profits, Hold from long-term perspective ICICI Bank: Annual report review  IL&FS Transportation Networks: Environment ministry clears 3 road projects Ipca Laboratories: Price target revised to Rs675 Mahindra & Mahindra: M&M to consolidate automotive component business Persistent Systems: Upgraded to Buy Pratibha Industries: Muted execution and higher interest expenditure dent earnings Raymond: Annual report review Reliance Industries: Refining margin to correct; petchem margin to improve in the quarter coming ahead Selan Exploration: Technology Budget for development activities approved; retain Buy State Bank of India: Annual report review - Price target revised to Rs2,450 Sun Pharmaceutical Industries: Upgraded to Buy post-correction with revised price target of Rs1,120  Tata Consultancy Services: TCS reiterates FY2014 will be better than FY2013 United Phosphorus: Annual report review  Unity Infraprojects: Price target revised to Rs57 Zee Entertainment Enterprises: New advertising directive to hit ad volumes, phased rates hikes to counter the move SHAREKHAN SPECIAL Currency impact Q1FY2014 Banking earnings preview Monthly economy review SECTOR UPDATES FMCG: Prices of key inputs remain stable; freebies galore Real Estate: Tough environment; be selective  VIEWPOINT Puravankara Projects: Banking on Bangalore market Titan Industries: New regulation alters business model   EQUITY TECHNICALS    Sensex: Final leg up  EQUITY DERIVATIVES    Derivative view: Bulls high on spirit  COMMODITY FUNDAMENTALS    Macro-economy Crude oil: Geopolitical risk premium the main driver  Bullion: Downside pressure to continue Base metals: Likely to move higher on bargain buying, US data Major economic events in July 2013   COMMODITY TECHNICALS    Buy gold on dips Silver has channel supports  Crude oil sees larger distribution Downside potential intact in copper Fresh opportunity for bears in nickel Turmeric poised for a fall  CURRENCY FUNDAMENTALS    Rupee hammered by broad-based dollar strength  INR-USD CMP: Rs60.18 (spot) INR-GBP CMP: Rs90.77 (spot) INR-EUR CMP: Rs77.64 (spot) INR-JPY CMP: Rs60.20 (spot)   CURRENCY TECHNICALS    USD-INR: Pit stop GBP-INR: Cushion for bulls EUR-INR: Bulls gathering strength  JPY-INR: Sub-division on the way up  PMS DESK Sharekhan PMS funds: Fund manager's view and product performance ProPrime-Top Equity ProPrime-Diversified Equity ProTech-Diversified ProTech-Nifty Thrifty ProTech-Trailing Stops  ADVISORY DESK    Monthly performance of Advisory products MID Trades Derivative Ideas  MUTUAL FUNDS DESK  MF PICKS Sharekhan's top mutual fund picks (equity)  Sharekhan's top SIP fund picks  EARNINGS GUIDE Click here to read report: Sharekhan ValueGuide   Sharekhan Limited, its analyst or dependant(s) of the analyst might be holding or having a position in the companies mentioned in the article.