Author Archives 
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CANTABIL RETAIL:IPO NOTE; Expansion led growth
About Cantabil Retail (CRIL): CRIL, an integrated discount apparel retailer, is in the business of designing, manufacturing, branding and retailing of apparels under the brands ‘Cantabil’ and ‘La Fanso’. The ‘Cantabil’ brand offers a complete range of formal wear, party wear, casuals & ultra casual clothing for men, women and kids in the middle-to-high income group. The ‘La Fanso’ brand caters to men’s segment in the lower-to-middle income group. Apparel range catering to a wide customer base, strong in-house design & research team and inhouse integrated capacity, are some of the strengths of CRIL…
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Ashoka Buildcon Limited: IPO NOTE
Ashoka Buildcon Ltd (ABL) is a Nashik based EPC contractor having pan India presence. Company owns 23 projects on BOT (Built Operate Transfer) basis covering 1100 kms and 6 foot over bridges which are operational. Other business vertical of ABL would include sale of ready mix concrete for road construction and civil works. ABL can also provide toll collection services to third party BOT projects. ABL is also capable of providing EPC solutions for power sub stations…
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ZF STEERING GEARS (VENTURA)
ZF Steering Gears (India) Limited, a pioneer in manufacturing and supply of Steering Gears for commercial vehicle (CV) space in India, is expected to gain from the rising demand for the steering gears. Apart from the positive business outlook, ZF also has significant liquid investments in its balance sheet which at the current prices is valued of Rs 115 per share. This provides much needed cushion to the stock. Over the next two years ZF is expected to exhibit a CAGR of 29% & 40% in its revenues & profitability respectively. At CMP of Rs 450, the stock is available at 9.1x & 7.3x its estimated earnings of Rs 49.4 & Rs 61.3 respectively…
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PRAKASH INDUSTRIES: Story remains unhampered
We hosted a conference call with Vipul Agarwal, Director of Finance, Prakash Industries (PKI). The management of PKI has categorically denied any indulgence in illegal activities as mentioned in the Times of India (9th September 2010 issue) with regard to selling coal in the open market from the Chotia mines. The management ascertained that the whole news article was published with malafide intent and entire allegations are baseless. The management also clarified that the Chotia mine does not fall in the Hasdeo Arand “No Go” region hence, the company can continue mining coal from it as per the approved mining plan…
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MARKET REVIEW 27th Sept, 2010
The key benchmark indices eked out small gains to attain their highest closing levels in more that 32 months as firm global stocks and the recent strong foreign fund inflows underpinned sentiment. However, profit booking pulled market off their intraday highs. Index heavyweight Reliance Industries (RIL) cut intraday gains. The BSE 30-share Sensex was up 72.20 points or 0.36%, off close to 150 points from the day’s high and up close to 35 points from the day’s low. The market gained for the second straight trading session today, 27 September 2010. Realty, capital goods, metal and consumer durables stocks rose. But, FMCG stocks fell. IT stocks, too, fell on a firm rupee…
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NSE Bulk Deals – India Equity Market 27th Sept, 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):
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Bulk Deals in BSE 27th Sept, 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…
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CAREER POINT INFOSYSTEMS: IPO NOTE, Company Background, Business Model & Key Strengths (ADITYA BIRLA MONEY LIMITED)
Career Point Infosystems Ltd was incorporated as a public company on March 2000 by Pramod Maheswari, who has been in tutoring for competitive entrance exams since 1993 along with other promoters Mr. Om Prakash Maheswari and Mr. Nawal Kishore Maheswari. In FY02, the company started its operations via franchisee centres and from April 2006 onwards, it started to provide tutoring via company operated training centres as well. CPIL is one of the leading tutorial service providers to high school and post high school students for various competitive entrance exams including All India Engineering Entrance Examination…
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MOTOGAZE: What seasonality? Demand grows unabated…
The Indian automotive industry is witnessing a trend of volume growth, which has been defying all seasonality trends of the past. This is reflecting the structural change in consumer patterns driven by the strong economic performance adding strength to the income levels of the urban as well as rural customers. The volume growth of the industry till date has been around 26% with the passenger car segment growing ~34% and commercial vehicle (CV) segment growing at ~45% leading the way. The robust growth across the segment has led to demand surpassing supply in all major segments with suppliers facing acute capacity shortages…
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TELECOM SECTOR: Revival in GSM subscriber addition…
Subscriber growth continued unabated in the telecom industry. The industry added 13.5 million GSM subscribers in August 2010 –highest since April 2010. Though net adds declined in metros, it was more than compensated in all other circles. Highest traction was seen in C Circles, which added 2.0 million subscribers against just 0.9 million in July 2010. Metros recorded MoM growth of 2.3% while A and B circles grew by 3.1% each and C circles by 3.2%. BSNL and Uninor put up an impressive show. Uninor had highest ever net adds at 2.2 million subscribers while BSNL added 2.3 million subscribers. Subscriber addition for Bharti Airtel was down at 2.0 million subscribers – lowest in several quarters…
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BANKING SECTOR: Basel III – been there; done that
■ Basel Committee on Banking Supervision (BCBS) announces Basel III capital requirements.
■ The new framework requires 50-200% higher tier I capital than that required under basel II
■ Indian banks would not require much capital for transition to Basel III norms as they comply with most of the norms even as of now… -
MARKET REVIEW 24th Sept, 2010
The key benchmark indices snapped last two days losses on Friday as the recent strong foreign fund inflows kept the sentiment upbeat. The BSE Sensex closed above the psychological 20,000 mark while S&P CNX Nifty crossed 6000 mark. Investors had booked profits in last two days after the recent strong rally which saw market scale their 32 month highs. Global cues lacked clear direction today. US index futures rose. European markets dropped. Asian stocks were mixed. The BSE 30-share Sensex was up 184.17 points or 0.93%, up close to 215 points from the day’s low and off close to 25 points from the day’s high…
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NSE Bulk Deals – India Equity Market 24th Sept, 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):
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Bulk Deals in BSE 24th Sept, 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…
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CEMENT SECTOR
■ Cement manufacturers in southern region intimate price hike of Rs30-35/bag effective Sept 7– Prices in other regions largely stable ■ Dealers confirm price hike – but skeptical about absorption capacity of market given sluggish offtake and ample supply – Dealers suggest net price could be Rs10-15/bag ■ Assuming best case effective price hike of Rs15/bag for south, H2FY11 entry prices could be higher than our est by Rs10/bag. Earnings of our coverage cos could get upgraded by 4-36%
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Mid-Quarter Monetary Policy Review: Inflation continues to be RBI’s priority
The Reserve Bank of India in its maiden mid quarter monetary policy review raised interest rates for the fifth time since mid March 2010 with an objective to control inflationary expectations. It raised the repo rate (the rate at which it lends to banks) and reverse repo (the rate at which it accepts surplus liquidity from banks) by 25bp and 50bp to 6.0% and 5.0%, respectively. Effectively, this reduced the Liquidity Adjustment Facility (LAF) corridor to 100bp after a reduction of 25bp in July 2010 policy as well. The Central Bank has maintained status quo on Cash Reserve Ratio (CRR) at 6.0%…