Author Archives 
-
Stocks with 35-50%+ potential
Midcap monitor is a new product from the Religare Strategy team where we would analyze and provide updates on midcap stocks. In our first edition, we provide 10 midcap picks (market cap of US$500mn-US$2bn) that we believe have 35-50% upside by Dec-11. To build a diversified portfolio, we have chosen stocks across the entire spectrum of Indian growth story – consumption (Ashok Leyland, Educomp, Glenmark Pharmaceuticals), investment (Voltas, Sobha Developers, Shree Cement, KEC Intl), Energy (Petronet LNG), diversified (Sintex), financials (M&M financial Services). We recommend investors to take significant position in these stocks for alpha performance.
-
JSW ENERGY LIMITED
■ Capacity to increase ~2x by FY12: JSW Energy (JSWEL) plans to more than double its capacity to 3.1GW by FY12 from 1.4GW currently. It plans to sell ~56% of its expanded capacity in the short-term market, which would increase its earnings sensitivity. If we consider the 270MW Raj West extension, the share of merchant capacity increases further to ~60%. ■ Exposed to the spot market for 46% of total coal requirement: JSWEL has entered into long term coal supply contract with PT Sungai Belati and its South African company
-
CLARIANT CHEMICALS: Capitalising on consumption boom
Clariant Chemicals (India) (CCIL), a 63.4% subsidiary of Clariant AG, Switzerland, is a leading specialty chemicals companies. India is witnessing one of the best growth rates ever seen in consumption in various sectors including automobiles, paints, personal care, food and beverages or textiles. With demand growing at a fast clip, CCIL is ideally placed to capitalise on this favourable trend as it caters to most of the consumption categories. Most of CCIL’s portfolio consists of specialty of products enjoying strong brand and tremendous customer loyalty due to superior quality and technology…
-
TELECOMMUNICATION SECTOR: The next round gets tougher
We maintain our medium-term cautious view on the telecom sector and downgrade Bharti Airtel (Bharti) to ‘HOLD’ and Reliance Communications (Rcom) to ’REDUCE’. We maintain ‘HOLD’ on Idea Cellular (Idea) and ‘BUY’ on Tulip Telecom (TTSL). We anticipate tariff wars to re-emerge with the implementation of Mobile Number Portability (MNP) and launch of 3G services. We believe, Bharti’s dominance in revenue market share and margins will be challenged by Idea, Aircel, and Tata Docomo. The entry of MVNOs will further make the market competitive. Over the longer term, we believe, the sector will witness de-leveraging of balance sheets and sustenance of healthy cash flows. But, at current valuations the street is in for a disappointment.
-
MARKET REVIEW 5th Oct, 2010
The key benchmark indices ended lower in choppy trade as resistance emerged after a three-day rally, but sustained foreign fund buying helped the broader market score gains. The market seesawed as traders booked profits at higher levels while investors bought shares on declines. Shares of Anil Dhirubhai Ambani group saw across the board rally today, 5 October 2010. Seven out of 13 sectoral indices on BSE ended in positive zone. FMCG and metal stocks faced major selling pressure in today’s trade. The BSE Mid-Cap and Small-Cap indices outperformed the Sensex. The BSE 30-share Sensex fell 68 points or 0.33%, off close to 152.83 points from the day’s high…
-
NSE Bulk Deals – India Equity Market 5th Oct, 2010
Bulk deal is a stock trading where stock quantities buy or sell by an investor is more then 0.5% of total number of equity shares of the company listed at India stock exchanges.
In year 2004 SEBI bring more transparency to the bulk deals by making is compulsory for stock exchanges to publish intraday bulk deals at the end of the trading day.
Below are current bulk deals at National Stock Exchange of India (NSE):
-
Bulk Deals in BSE 5th Oct, 2010
Members are required to make a disclosure on a daily basis up to 5.00 p.m. through DUS (Data Upload software), with respect to all transaction in a scrip for a client where the total quantity bought/sold is more than 0.5% of the number of equity shares of the company listed at BSE…
-
MARKET REVIEW 4th Oct, 2010
Profit profit at higher level wiped off most of the strong initial gains as the key benchmark indices ended just a tad higher. Weakness in European stocks and US index futures, triggered profit taking. Nine out of 13 sectoral indices on BSE were in positive zone. Healthcare stocks were in demand while FMCG and IT stocks fell. The market breadth turned negative, in contrast with a strong breadth in early trade. The BSE 30-share Sensex rose 30.69 points or 0.15%, off close to 231 points from the day’s high…
-
NSE Bulk Deals – India Equity Market 4th Oct, 2010
Bulk deal is a stock trading where stock quantities buy or sell by an investor is more then 0.5% of total number of equity shares of the company listed at India stock exchanges.
In year 2004 SEBI bring more transparency to the bulk deals by making is compulsory for stock exchanges to publish intraday bulk deals at the end of the trading day.
Below are current bulk deals at National Stock Exchange of India (NSE):
-
Bulk Deals in BSE 4th Oct, 2010
Members are required to make a disclosure on a daily basis up to 5.00 p.m. through DUS (Data Upload software), with respect to all transaction in a scrip for a client where the total quantity bought/sold is more than 0.5% of the number of equity shares of the company listed at BSE…
-
INDIA CONSTRUCTION SECTOR: Concerns overdone; risk-reward ratio favourable
Strong order inflows, improved credit scenario and better execution capabilities are expected to accelerate revenue momentum for India construction sector in the coming quarters. We expect our coverage universe to report 16%/23% YoY growth in revenue for FY11/12 (8% in FY10). With the recent correction, the risk-reward ratio for select construction companies has turned favourable, in our view. Revival in execution and pick-up in industrial/international orders will be the key triggers for construction companies in the near to medium term. Simplex Infrastructure (SINF) and Nagarjuna Construction (NJCC) are our top-picks in the sector with 20%+ potential upside from current levels…
-
MIDCAP STOCKS MONITOR REPORT
We are suggesting 10 midcap stocks in this Midcap Monitor report which we believe have 35 – 50% upside by Dec.-2011. We have selected the following stocks from the entire gamut of Midcap growth story -
1) Ashok Leyland
2) KEC International
3) Glenmark Pharmaceuticals -
JAIPRAKASH ASSOCIATES: Well placed to benefit from infrastructure creation
■ Jaiprakash Associates, has underperformed the broader market by around 39% in the past one year on account of some overhangs in terms of a potential sale of its treasury stock, a delay in the execution of its Yamuna Expressway project due to farmers’ protests and its plan to enter into the non-related fertiliser business. ■ With regards the farmers’ protests against the Yamuna Expressway project in Uttar Pradesh for a justifiable compensation for land to be surrendered by them, the government has decided to go back to the drawing board to create an expressway authority and decide the funding pattern for the projects…
-
HYDERABAD INDUSTRIES LIMITED
Hyderabad Industries Ltd. (HIL) is one of the leading manufacturers of Fibre Cement Sheets in India with a market share of about 20.5%. Its key product range include Fibre Cement Roofing Sheets sold under the brand name CHARMINAR, AAC Blocks and Panels called AEROCON, and Calcium Silicate Insulation Product (thermal insulation) called HYSIL…
-
RANBAXY LABORATORIES: Multiple triggers ahead; Upgrade to Hold
■ Worst is behind; Multiple triggers ahead
■ These triggers present potential upsides of Rs120
■ Factored in only triggers like – hive-off of NCE R&D and monetization of Aricept FTF- which have already kicked in
■ Upgrade to ‘Hold’ and raise target price to Rs520. Have a positive bias on the stock but will factor in upsides only on occurrence of triggers -
CRISIL: Putting cash to good use – acquires Pipal Research
■ CRISIL to by Pipal Research, for a sum of USD12.75mn. The acquisition is at 1.6-3.2x EV/ Sales (assuming 50-100% stake), which is lower than 2.2x it gave for Irevna in 2005
■ Looking at CRISIL’s history of acquiring smaller companies and then quick scale up it will be able to scale up Pipal’s business significantly leveraging their existing capabilities…