Latest Analysis on Top 10 Stocks by Religare

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Top10StocksReport.pdf (192 KB)

 Use the information to make your trading and investment decision and re-balance your portfolio if necessary says Religare.

IFCI Tax Saving Long Term Infrastructure Bonds– SERIES II

Issuer
IFCI Limited ("the Issuer")

ifci

Offering
2,00,000 Unsecured, Redeemable, Non-Convertible Bonds of Rs. 5,000/- each aggregating to Rs. 100 Crore with a green-shoe option to retain over-subscription for issuance of additional Infrastructure Bonds

Type
Private Placement basis

Instrument
Unsecured, Redeemable, Non-Convertible Bonds Series II having benefits under section 80 CCF of the Income Tax, 1961 for long term Infrastructure Bonds

Rating
BWR AA- by BRICKWORK RATINGS INDIA PVT LIMITED

Eligible Investors
Resident Indian Individual (Major) and HUF through Karta of the HUF

Security
Unsecured

Face Value
Rs.  5,000/- per bond

Issue Price
At par (Rs. 5,000/- per bond)

Minimum Subscription
1 Bond and in multiples of 1 Bond thereafter,

Tenure
10 years, with or without buyback option after five years

Options for Subscription
The Bonds are offered under the following 4 options-
• Option I - Non-cumulative and Buyback after 5 years
• Option II - Cumulative and Buyback after 5 years
• Option III - Non-cumulative and no Buyback
• Option IV - Cumulative and no Buyback

Redemption / Maturity
At par at the end of 10 years from the deemed date of allotment. For Cumulative Option, at par with cumulated interest thereon.

Coupon rate
• Option I & II - 8% p.a.
• Option III & IV - 8.25% p.a.
Option II and Option IV will have cumulative payment at the end of the Buyback period or 10 years, as per the option opted by the Investor.

Listing
Proposed to be listed on BSE

Trustee
Axis Trustee Services Limited

Depository
National Securities Depository Ltd. and Central Depository Services (India) Ltd.

Registrars
Beetal Financial & Computer Services (P) Ltd.

Mode of Payment
Interest payment will be made through ECS/At Par Cheques/Demand Drafts

Issuance
Demat form. But, investors interested for physical form may provide a cancelled cheque, self-certified copies of PAN Card and residential proof

Trading
Demat mode only following expiry of lock-in period

Issue Open Date
November 16, 2010

Issue Close Date
December 31, 2010
• The issuer would have the right to pre-close the issue or extend the closing date by giving 1 day notice to the Arrangers

Deemed Date of Allotment
January 31, 2011

Buyback dates
January 31 every year commencing from year 2016 till year 2020.

For further information, please contact Ms Maninder Kaur/ Ms.Barkha Chhabra /Mr. Gopal Singh/ IFCI Ltd, IFCI Tower,61 Nehru Place, New Delhi at 91-11-41792800/41732000 or  maninder.kaur@ifciltd.com or barkha.chhabra@ifciltd.com or gopal.singh@ifciltd.com.

To download Application Form, click here.

To download Information Memorandum,click here .

To view collecting bank branches list,click here .

To view contact details of arrangers,click here .

To view Corrigendum for subscription of bonds in physical form ,click here .




IPO Update - Punjab & Sind Bank


Punjab & Sind Bank
Price Band: Rs 113 to Rs 120
Issue Opens on: December 13, 2010 | Issue Closes on: December 16, 2010

Issue Opens: December 13, 2010
Issue Closes: December 16, 2010
Lot Size: 50 Shares & in multiples of 50 shares thereafter
Price Band: Rs113 - Rs120
Issue size: Rs 480 crore
IPO Rating: "CARE" IPO Grade 4/5 means 'Above Avg. Fundamentals'
* (5% discount on issue price to retail investors and employees)

Issue highlights (source: BRLM/RHP)

  • Punjab & Sind Bank (PSB) is a nationalised bank incorporated in 1908 with predominant exposure to north India.

  • PSB acts as the lead banker in three districts of Punjab, ie Ludhiana, Faridkot and Mogait, and has a total of 8,116 employees, serving over 0.60 crore customers.

  • PSB currently operates approximately 926 branches and has 63 own ATMs and access to more than 50,000 ATMs across the country for its customers.

  • The primary business operations of PSB are divided into retail banking, corporate banking, priority sector banking, treasury operations and other banking services, such as agency functions for insurance, distribution of mutual funds, and pension and tax collection services.

  • In retail banking, the bank provides loans and advances for housing, trade, automobiles, consumer durables and education as well as personal loans.

  • PSB is planning to broaden its product base and service offerings to its clients. For instance, PSB proposes to roll out Internet banking systems, offer mobile banking services, install new ATMs, provide client loan syndication and give higher focus on high-margin agency and distribution agreements amongst others.

  • Financial Performance: The PSB's total consolidated income stood at Rs4,326.30 crore (FY2010) vs Rs1,401.93 crore (FY2006) and its net profit stood at Rs506.82 crore (FY2010) vs Rs285.68 crore (FY2006). The bank has registered a CAGR of 21.1% in net total income, 35.6% in operating income and 15.1% in net profit over the period 2006-2010.


  • Five Bluechips for your Portfolio

    A Million Words, a Million Dollars

    Image via Wikipedia

    Imagine. You are running following filters to choose best stocks to include your portfolio among BSE500 stocks.

    1. A compounded annual growth rate of more than 20% in EPS
    2. The five year average Return on Networth exceeding 20%
    3. Debit-Equity ratio of less than 2
    4. Interest coverage ratio exceeds 2
    5. Price-earnings to growth ratio was less than one
    6. PE less than Sensex PE

    You would get exceptionally good bluechips for your portfolio. Value Research Online’s “Wealth Insight” applied above filters and has chosen 5 stocks among 20 it got. They are

    1. Kalpataru Power Transmission
    2. Welspun Corp
    3. Wipro
    4. Exide Industries
    5. Blue Star

     

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    Collection of third party account payee cheques – RBI Prohibits crediting proceeds to third party accounts

    The practice of collection of cheques crossed ‘account payee’ through third party accounts (of co-operative credit societies) is not permissible. However, to facilitate collection of cheques from a payment system angle, sub-members of the clearing houses may collect the cheques of their customers for the credit to their accounts through the sponsor member, under certain circumstances.
    Reserve Bank of India has notified that collecting banks may consider collecting account payee cheques drawn for an amount not exceeding Rs.50,000/- to the account of their customers who are co-operative credit societies, if the payees of such cheques are the constituents of such co-operative credit societies. While collecting the cheques as aforesaid, banks should have a clear representation in writing given by the co-operative credit societies concerned that, upon realization, the proceeds of the cheques will be credited only to the account of the member of the co-operative credit society who is the payee named in the cheque.

    Source : Banknet India
    However, RBI has clarified that in the event of a claim by the true owner of the cheque, the rights of the true owner of the cheque are not in any manner affected and banks will have to establish that they acted in good faith and without negligence while collecting the cheque in question.




    Reserve Bank of India (RBI) plans to issue Inflation Indexed Bonds (IIBs)

    Reserve Bank of India Logo

    Image via Wikipedia

    In India, a variant of indexed bonds, i.e. Capital Index Bond (CIB), 2002 was issued on December 29, 1997 wherein only principal repayments at the time of redemption were indexed to inflation. Based on the past experience and feedback from market participants, a new version of IIB has been designed with protection from inflation to both interest payments and principal repayments linking them to Wholesale Price Index (WPI) for all commodities.
    In the backdrop of high inflation, increasing preference of investors for diversified instruments and to further improve the depth and width of G-Sec Market, it has been felt that IIBs could be issued at the current juncture, Inflation-indexed bonds will help investors and issuers insulate themselves from inflation, and help in better risk diversification.

    The Reserve Bank of India has, placed a technical paper on ‘Inflation Indexed Bonds” for public comments. The technical paper sets out the structure of IIBs including method of indexation (principal or interest), inflation index lag, issuance method, and methodology to compute settlement price.
    Salient features
    • In the current structure of IIBs, the principal will be indexed and the coupon will be calculated on the indexed principal. This structure is the same as was set out in the discussion paper on Capital Indexed Bond issued by the Bank in 2005.
    • Since the objective of the IIBs is to provide protection against actual inflation, the final WPI will be used for indexation.
    • Final WPI with a lag of four months will be used as the Reference WPI for the first day of the calendar month in which ‘Issue Date’ and ‘Set Date’ falls.
    • As and when WPI index is being revised on technical grounds (coverage, base year, etc.), the new WPI index will be used for indexation purpose and past value of new WPI index would be computed through a linking factor.
    • In the primary auction, the IIB would be issued at par and investors would quote their bids in terms of real yield.
    • In case of reissuance, investors would bid in terms of price and settlement price may be computed multiplying the sum of the cut-off price and accrued real interest by the Index Ratio.
    Comments on the technical note may be forwarded to the Chief General Manager, Internal Debt Management Department, Reserve Bank of India, Central Office Building, 23rd floor, S.B. Road, Mumbai-400001 latest by December 31, 2010.

    Source : News Reports & Banknet

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    A2Z Maintainance & Engineering Services Limited IPO Note: Avoid says Ventura

    At the lower price band of Rs. 400, the shares are offered at a pre issue
    P/E of 23.7x and post issue P/E of 30.8x which is at a significant
    premium to its peers. Ventura recommend an AVOID.

    Thanks to :

    www.ventura1.com

    Fundamental Picks By Religare

    Fundamental Picks By Religare

    Religare Broking

    08 December, 2010


    Fundamental Picks

    Religare recommending the following stocks, which are fundamentally sound and have fallen sharply from their 52week high. Investors can consider them with more than one year investment horizon.

    Company Name
    CMP * BV P/BV 52 Week High 52 Week Low Deviation from 52Wk High Deviation From 52WK Low

    Amtek Auto

    128.15

    180.66

    0.71

    200.85

    112.2

    -36.2

    14.22

    Pratibha Industries

    66.2

    41.28

    1.6

    89.75

    54.04

    -26.24

    22.5

    Amara Raja Batteries

    180.05

    63.66

    2.83

    228.05

    139.65

    -21.05

    28.93

    IOCL

    369

    208.21

    1.77

    458.9

    274

    -19.59

    34.67

    Hero Honda

    1787.4

    173.51

    10.3

    2094

    1497

    -14.64

    19.4

    BHEL

    2246.05

    325.16

    6.91

    2695

    2060

    -16.66

    9.03

    Century Textiles

    431.15

    188.98

    2.28

    595

    402

    -27.54

    7.25

    Karnataka Bank

    162.6

    136.4

    1.19

    209.25

    108.45

    -22.29

    49

     





    TNEB online Bill Payment Site is not loading

    Tamil Nadu Electricity Board has recently permitted it’s consumers to pay their EB bills online. But it seems that EB didn’t upgrade it’s servers and bandwidth before allowing it’s customers to pay online. Result ? Very poor user experience.

    It takes unusually very long time to load the pages. It takes more than 5 minutes to process request even in broadband. Sometimes it shows no connectivity with database.

    EB Payment Gateway_1291797578897  

    EB Payment Gateway

    The Govt. should take remedial steps immediately. Otherwise it won’t add any convenience to people at large.




    Gmail Security Checklist

    Image representing Gmail as depicted in CrunchBase

    Image via CrunchBase

    Google has published a checklist to stay secure and protect your gmail/google account.

    Part I . On your Computer

    1. Check for viruses and malware

    While no virus scanner can catch 100% of infections, it is still important to run a scan on your computer with a trusted anti-virus software (or install a program that runs in the background and scans continuously). If the scan detects any suspicious programs or applications, remove them immediately. Find virus scanners here.

    2. Make sure your operating system is up to date

    Operating systems release patches to repair security vulnerabilities. Whether you use Windows or Mac OS, we recommend protecting your computer by enabling your automatic update setting, and updating when you get a notification.

    3. Make sure to perform regular software updates

    Some software updates aren't included in your operating system updates, but they are just as important. Software such asAdobe Flash, Adobe Reader, and Java release regular updates that may include repairs for security vulnerabilities.

    Part II. Your Browser

    1.Make sure your browser is up to date

    To check for browser updates in Internet Explorer, select the Tools tab and click Windows Update. In Firefox, just click theHelp tab and select Check for Updates. Google Chrome automatically updates when a new version is released.

    2. Check your browser for plug-ins, extensions, and third-party programs/tools that require access to your Google Account credentials

    Plug-ins and extensions are downloadable computer programs that work with your browser to perform specific tasks. For example, you may have downloaded a plug-in or extension that checks your Gmail inbox for new messages. Google can't guarantee the security of these third party services. If those services are compromised, so is your Gmail password.

    Part III. Your Google Account

    1. Change your password

    If your account has been recently compromised, you should update your password now. In general we suggest you change it periodically, following these guidelines:

    • Pick a unique password that you haven't previously used on other sites or on Gmail. Just changing one character or number still counts as reusing your password.
    • Don't use a dictionary word or a common word that's easily guessable. Use a combination of numbers, characters, and case-sensitive letters.
    2. Check the list of websites that are authorized to access your Google Account data

    Make sure that the list of authorized websites are accurate and ones that you have chosen. If your Google Account has been compromised recently, it's possible that the bad guys could have authorized their own websites to access your account data. This may allow them to access your Google Account after you have changed your password.

    To edit the list of authorized websites:

    1. Sign in on the Google Accounts homepage.
    2. Click the My Account link displayed at the top right of the page.
    3. Click Change authorized websites. This page will list all third-party sites you've granted access to.
    4. Click the Revoke Access link to disable access for a site.
    3. Update your account recovery options

    We all may forget our passwords at some point, so we strongly encourage that you update your account recovery options. To update these options, sign in to your Google Account by going to https://www.google.com/accounts and click Change password recovery options.

    • Recovery email address: We can use your recovery email address to communicate with you if you lose access to your account. Learn more.
    • SMS: We can send you a recovery code to your mobile phone number, which you can use to reset your password. Learn more.
    • Secret question: This option is only available if you can't use the above recovery options and only if haven't tried to sign in during the past 24 hours. An ideal answer to your security question is easy for you to remember, but hard for others to guess.

    Part IV. Your Gmail Settings

    1.Use a secure connection to sign in.

    In your Gmail settings, select 'Always use HTTPS.' This setting protects your information from being stolen when you're signing in to Gmail on a public wireless network, like at a cafe or hotel. Read more.

    2.Check for any strange recent activity on your account.

    Click the Details link next to the 'Last Account Activity' entry at the bottom of your account to see the time, date, IP address and the associated location of recent access to your account.

    3.Confirm the accuracy of your mail settings to ensure that your mail stays and goes where you want it to.

    Sign in to your account and click on the Settings link at the top to check the following tabs:

    • General: Check Signature, Vacation Responder, and/or canned responses for spammy content
    • Accounts: Verify your settings under Send mail as, which includes checking your reply-to settings, and Check mail using POP3.
    • Filters: Check that no filters are sending your mail to Trash, Spam, or forwarding to an unknown account.
    • Forwarding and POP/IMAP: Ensure your mail isn't sent to an unknown account or mail client.

    Part V. Final Reminder

    1.Watch out for messages that ask for your username and/or password. Gmail will never ask for this information.
    2.Never give out your password after following a link sent to you in a message, even if it looks like Gmail's sign-in page. Access Gmail directly by typing https://mail.google.com in your browser's address bar.
    3.Don’t share your password with other websites - Google can’t guarantee the security of other websites and your Gmail password could be compromised.
    4.Keep secrets! Never tell anyone your password, or your secret question and answer; if you do tell someone, change it as soon as possible.
    5.Clear forms, passwords, cache and cookies in your browser on a regular basis - especially on a public computer.
    6.Only select 'Stay signed in' if you're signing in from a personal computer.
    7.Always sign out when you've finished reading your mail.
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    Airlines cut spot fares 20-25%

    Last-minute fares on domestic flights have fallen 20-25 per cent from the previous high levels. This follows the Ministry of Civil Aviation and Directorate-General of Civil Aviation (DGCA) threatening to take action against airlines for what officials said was unreasonably high fares. Now last-minute fares, more popularly known as `spot fares', between Delhi and Chennai were in the range of Rs 5,000 to Rs 15,000, while a Delhi-Hyderabad one-way ticket was available for between Rs 5,000 and Rs 13,000.
    Earlier, passengers were paying up to Rs 40,000 one-way for a flight between Delhi and Bangalore or Delhi and Kolkata, while a Chennai-Coimbatore flight cost up to Rs 15,000. The Ministry of Civil Aviation has taken a strong view of the airlines raising fares with the Minister of Civil Aviation, Mr Praful Patel, announcing the constitution of an Economic Advisory Committee headed by the Civil Aviation Secretary to look into tariff related issues. Earlier this month, the airlines had proposed that domestic fares be categorised into four slabs based on the distance - less than 750 km, 750-1000 km, 1000-1,400 and more than 1,400 km. The Minister had rejected the proposal.
    Source : News Reports

    WWW.INVESTCHIPS.COM This post is written by R.John Christy for www.investchips.com.

    How to pay TNEB Bill online?

    Forums and Minerals, the new Internet tools

    Image via Wikipedia

    At last Tamil Nadu Electricity Board (TNEB) has permitted it’s consumers to pay electricity bills online. To pay bills online, you need to do a one time registration in TNEB payment gateway @ https://www.tnebnet.org/awp/TNEB/ .

    EB

    Click on the New User Signup for one time registration.

    User  

    Fill in the details like name, zone , consumer no. and email id. Also choose a login name and password. Then click on submit.

    Then check your email inbox. You can find a mail like a one below.

    Hi, This is a greeting email from TNEB

    Thank you for choosing to register with www.tneb.in

    To complete your Registration, Click the following link to confirm

    Click this link to confirm your Registration with www.tneb.in
    Username:   xxxxxxxx
    Password:   xxxxxxxx

    Click the link in the mail, that would validate your mail Id. Immediately the web page would redirect you to login page. Fill your login name and password. The home page contains pending bills which you can pay.  You can add any number of service numbers by clicking add service No. menu.

    You can pay your bills through Credit Card ( Both VISA and Master Card), Net Banking ( IB, Axis, ICICI, CUB and IOB ) and Debit Cards ( Indian Bank, Indian Overseas Bank and Canara Bank). 

    Charges ? You have to pay 2.1345% extra as bank service charge/ payment validation charge. If you are an axis bank customer, you may use direct debit facility without any service charges.

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    Dividend yield stocks list prepared by Religare

    Download now or preview on posterous
    DivYield10.pdf (247 KB)

    Dividend yield is one of the main factors to consider when investing in dividend-paying stocks. It is an indicator of the return that the investors are earning on their shares. Religare have selected 40 stocks based on their performance. The Yield is calculated on the latest dividend but they have also taken consideration of the past two year’s dividend. Investors interested in dividend income can consider the stocks in this list.

    Online share trading safety tips from Sharekhan

    The widespread use of the Internet for online transactions & a general lack of awareness in safeguarding oneself from the threats involved in doing the same are leading to an increase in the number of cyber crimes and various frauds causing financial losses & theft of personal or confidential information.

    To ensure that you don't fall prey to any such incidents, we would like to share with you the following list of information security do's & dont's that will help you trade wisely as well as securely with Sharekhan.

    Do not click on any links received in your e-mails to connect to the Sharekhan website. Always type the website address in your web browser instead.
    A typical phishing link may look like http://www.sharkhan.com/ (Notice the missing "e" in the link). Scrolling the mouse over the link would show the real address in the browser status bar.
    Always check the web address carefully before sharing any sensitive information.
    Confirm presence of the padlock icon at the upper or bottom right corner of the webpage for all secure transactions. You can double click on it to see the certificate and verify authenticity of the webpage.
    Do not open unexpected e-mail attachments & never give out information such as your password, customer id, trade details to any e-mail requests, even if the request is from a seemingly genuine organization.
    Ensure that you have installed the latest anti-virus/ anti-spyware/ personal firewall/ security patches on your computer or high end mobile phones.
    Avoid accessing your online trading account from shared or unprotected computers in public places.
    Beware of Vishing calls, that try to extract your confidential information over the phone, to thwart identity theft and related risks.
    Do not share your account or personal details with, unknown/ non-validated source, luring you with commission or attractive offers.
    Do not handover cash, blank cheques, blank delivery instruction slips to anyone. Fill up all the necessary details in the forms/cheques before doing so.
    Stay aware & updated regarding the latest online security tips.




    HDFC chalks out a major foray into education

    Underexposure

    Image by Unlisted Sightings via Flickr

    Housing Development Finance Corporation (HDFC), India’s largest housing finance company, will make a big-bang entry into education. HDFC will look at small towns to either set up schools or take over defunct boarding schools. The entry into education will be made through a separate subsidiary. HDFC directors will need to be on the board of schools as trustees. When a company director becomes a trustee on a school’s board, he can co-opt another trustee and the trust can be taken over. The trust can then sign agreements with interested parties to manage the assets. 

    Kindergarten to class 12 (K-12) is said to be the most attractive segment of the education market, as a student usually stays on for 12 years. The K-12 segment will be the direct beneficiary of rising middle-class incomes in India. HDFC already has an educational loan unit — Credila Financial Services — in which it raised its stake to 51 per cent in July. Credila plans to leverage the distribution network and customer base of HDFC Bank to expand and also bring down the cost of funds.

    Credila, which hopes to grow its loan book 2.5 times in the current financial year, is also in talks with other banks to diversify sources of funds. It has a line of credit from Punjab National Bank. At present, Credila lends around 65 per cent to students pursuing courses within the country. The company charges interest rates of between 9.75 per cent and 12.5 per cent on loans of up to Rs 50 lakh, unlike PSBs, which do not lend more than Rs 20 lakh.

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    LIC Housing Finance has managed to keep its NPAs under 1 per cent for more than nine consecutive quarters.

    The corporate loan portfolio of LIC Housing Finance Company, whose CEO is accused in a bribery case, constitutes only 11 per cent of its total loan book, as against around eight per cent last year. The retail portfolio, at 89 per cent, constitutes the major portion of the housing finance company's book.

    As on September 30, the housing finance company's outstanding home loan portfolio stood at Rs 43,385 crore. Of this, loan to builders and developers works out to around Rs 4,800 crore, as against around Rs 2,600 crore in the year ago period. The asset quality of the corporate loan book is good with the gross non-performing assets from this segment at 0.08 per cent as on October 31, 2010. This is lower than the gross NPAs from the retail segment which stood at 0.84 per cent.

    LIC Housing Finance has managed to keep its NPAs under 1 per cent for more than nine consecutive quarters. As on September 30, the net NPAs of the company stood at 0.21 per cent. In the fiscal ended March 2010, the company grew its loan book by 38 per cent and registered a 70 per cent year-on-year growth in disbursements. In the first six months of the current fiscal, LIC HF's loan book expanded by 36 per cent while disbursements were up by 37 per cent.

    Source : News Reports




    IPO Note: Manganese Ore India Ltd (MOIL) – Subscribe says Aditya Birla Money

    Manganese Ore India Ltd. (MOIL) is India’s largest manganese ore miner based on manganese ore production. In FY10, MOIL produced 1.09mn tonnes of raw manganese ore, accounting for more than ~40% of India's manganese ore production. MOIL’s total manganese ore resources and reserves as per JORC code amount to 69.5mn tonnes and 21.7mn respectively. MOIL has high quality manganese ore reserves. 55% of MOIL’s manganese ore reserves have an average manganese content of above 40%, which is considered high grade; 27.5% of it have an average manganese ore content of between 36.0% and 39.9%; and the rest has an average manganese ore content of not less than 30%. Also, unlike other PSU’s, MOIL enjoys complete autonomy in pricing and gets the full benefit of soaring international manganese ore prices on account of high demand from China (MOIL’s average sales realisation per tonne of manganese ore was `11,709.4 in H1FY11 as compared to `6501.3 in FY08). As ferro alloys cost comprise a miniscule proportion of the total cost of steelmaking, pricing of manganese ore does not invite government interference. Also, most of MOIL’s reserves are deposited in areas with favourable geological and mining conditions and are of regular shape, and its mines benefit from well-developed road and rail infrastructure. This leads to low capex and low extraction cost for MOIL. Strong global manganese ore prices and low operational costs combined have enabled MOIL to earn strong EBITDA margins of above 60%, annual profits between `4.7-`6.7bn and an RoE of above 30% over the last 3 years. With low capex and strong operating cash flows, MOIL has been a zero debt company and accumulated net cash of `17.6bn (cash per share of `104.9) as on 30th September 2010. Its net cash translates into 28% of its market cap at the higher price band of `375. MOIL also has a good dividend paying track record with a consistent dividend payout of 20% over the years.
    Going forward, MOIL is likely to grow its earnings and long term value through capacity expansion from existing mines, accretion of reserves through exploration, forward integration into ferro alloys, and cost efficiency improvements. Its large size of manganese ore production and reserves, and having a market share of more than 40% in India makes MOIL well positioned to capitalise on the wide demand-supply gap for manganese ore in India and strong global manganese ore pricing.
    At the higher price band of `375, MOIL trades at an annualised P/E and EV/EBITDA of 9.5x and 4.7x FY11E. Net of cash (`104.9/share), the core business is available at 6.4x annualised earnings for FY11. There is no pure play manganese ore domestic peer worthy of comparison. Major global manganese ore players are diversified miners, so wouldn’t be strictly comparable. Other domestic mining companies like NMDC and Coal India trade are trading at 14-17x FY11 earnings. Given the favourable fundamentals of the manganese ore industry in terms of strong global pricing and India’s net importer status, MOIL’s large size in terms of production and reserves, its low capex requirements and low extraction cost and a strong balance sheet, we believe that MOIL’s IPO has been attractively priced. We believe that MOIL is an excellent long term bet on the natural resources sector and should be part of the core portfolio of an investor. We recommend SUBSCRIBE, both from a short and long term perspective, to MOIL’s IPO at the higher price band of `375. There is a retail discount of 5%, i.e. ~`18.75/share as well which makes it even more attractive.

    Source :  Aditya Birla Money Research Report

    Shree Renuka Sugars: Brazilian acquisitions a game changer, buy says Motilal Oswal

    Shree Renuka Sugars: Brazilian acquisitions a game changer, buy says Motilal Oswal.

    Brazilian acquisition: In FY10 SRS acquired 100% in Vale do Ivai and 50.34% in Renuka do Brasil (the erstwhile Equipav) which propelled it from a leading Indian sugar company to among the largest integrated global sugar players. SRS now stands to benefit from the ongoing recovery in the global sugar industry. Brazilian acquisitions are characterized by (i) assured low cost cane availability for 6-12 years, and (ii) a settled balance sheet with debt at less-than-market costs and repayment over years. Cash flows from the Brazilian operations would be self sufficient to meet obligations and yield a surplus. We model a payback period of four years for VDI and seven for Renuka do Brasil. Renuka's Brazil business (seventh largest by size) has potential to list and unlock value for Renuka shareholders in the medium term.

    SRS's integrated, diversified and flexible business model makes it more resilient to cyclical downsides. Over FY06-10, SRS grew from a relatively small domestic sugar play to a global giant, maintaining average RoE of 32.4% and EPS CAGR of ~20% in a cyclical industry, which speaks volumes about its innovation, vision and capabilities.

    View & Valuations: SRS is the best proxy to play the global sugar industry recovery and is a direct play on rising sugar/ethanol prices. Strong cash flow visibility will allow it to de-leverage itself and address concerns regarding its high leverage. We expect SRS to post revenue and net profit CAGR of 19% and 20% respectively, over FY10-12. Motilal Oswal value SRS at Rs119, based on EV/EBITDA of 6 times FY12 EBITDA an upside of 32%. Initiate coverage with Buy.
    Source : Motilal Oswal Research Report

    Shipping Corporation of India Ltd - IPO Note : SUBSCRIBE says Ventura

    Issue Details
    Listing NSE & BSE
    Offer Open date 30th Nov 2010
    Offer Close date 3trd Dec 2010
    Promoters President of India
    Price Band 135 -140
    Industry Shipping
    Valuation & Recommendation
    At the upper end of price band of Rs.140 the stock is valued at a P/E of 8.9x and P/BV of 0.9x. The industry composite PE stands at 14x. Issue pricing is considered aggressive given the stock is currently quoting just above the issue price. However, with reasonable valuation, a sustainable business model and traction in revenues, Ventura recommend SUBSCRIBE to the issue for long term gains.
    Source : Ventura Research report

    Our take : Listing gains are uncertain. There are few risks and cyclical nature of business makes it unattractive. Hence investchips don't recommend this issue.


    IPO Update - Claris Lifesciences Ltd (Revised) : SHAREKHAN


    Claris Lifesciences Ltd
    Price band (Revised): Rs 228 to Rs 235
    Issue opens on: November 24, 2010 | Issue closes on (Revised): December 2, 2010
    Issue opens on: November 24, 2010
    Issue closes on (Revised): December 2 , 2010
    Lot size: 22 shares and in multiples of 22 shares thereafter
    Revised Price band: Rs228 - Rs235
    Issue size: Rs 300 crore

    Issue highlights (source: BRLM/RHP)

    • Claris Lifesciences Ltd (CLL), is one of the largest Indian pharmaceutical companies catering to the niche segment of sterile injectables.

    • CLL has presence across 76 countries and achieved approximately 1,100 product registrations worldwide with 332 pending approval.

    • CLL has been successful in garnering approvals from foreign regulatory authorities which include USFDA, MHRA (UK), TGA (Australia) and GCC FDCA.

    • The Key products of CLL such as propofol, iron sucrose, hydroxyl ethyl starch, ciprofloxacin and metronidazole have large markets worldwide with very little competition for CLL on these products due to the company's complex manufacturing process.

    • CLL believes it is the sole company in India that possesses the technology to produce unibag non-PVC infusion system. Thus, the company plans to leverage this expertise and competitive advantage by aggressively marketing these drugs and gain a strong foothold in the global markets.

    • Its business arrangement with pharmaceutical behemoth Pfizer Inc. with a view to expanding its business in the USA and the other regulated markets will significantly augment revenues and bottom line with higher product and facility approvals from the USFDA and other regulatory bodies.

    • Its shareholders includes renowned private equity player Carlyle PE, which invested Rs90.5 crore in it in March 2006 for a 13.9% stake.

    • Financial Performance: Total sales grew at a compounded annual growth rate (CAGR) of 29%, its earnings before interest, tax, depreciation and amortisation grew at a CAGR of 59% and its net profit increased at 65% over FY2005-09.


    SBI MF Launching- SBI Debt Fund Series 18 Months-4

    Launching SBI Debt Fund Series 18 Months-4
    SBI Debt Fund Series is a Close-ended Debt Scheme and the objective is to provide regular income, liquidity and returns to the investors through investments in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments.
    Advantages
    Choose your investment option: Growth or Dividend (payout)
    Eligible for Double Indexation as per current Tax Rules
    Scheme will be listed on the National Stock Exchange (NSE)
     

    Load structure New Fund Offer Open On: 30 November 2010
    Entry Load Not Applicable
    Exit Load: Not Applicable. Since the scheme will be listed on the Stock Exchange, there will be no Exit Load.
     
    Asset Allocation Instruments

    Indicative Allocation

    (% of Total Assets)

    Risk Profile
      Maximum Minimum High/Medium/Low
    Government of India dated Securities and Treasury Bills, PSU, and Corporate Bonds/Debt Instruments*, Money Market Instruments 100% 0% Low to Medium
    *Exposure to Securitized debt may be to the extent of 40% of the net assets
    Options Offered Growth and Dividend (Payout)

    Minimum Application

    Amount in (Rs.)

    5000/- and in multiples of 10/- there after


     

    www.sbimf.comSBI MUTUAL FUND


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