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Saturday, March 17, 2007
Stocks you can pick up this week
M&M
CMP: Rs 731
TARGET PRICE: Rs 1,030
HSBC Securities has retained its ‘overweight’ rating on M&M with a 12-month price target of Rs 1,030. “M&M has overcome input cost pressures through a combination of factors: production in tax-free zones in H2FY06; benefits from consolidation in the tractor industry; greater contribution from diesel generator sales; the transfer of the light commercial vehicle business to a separate JV called Mahindra International; an increase in returns to scale and economies of scale after diversification into the auto parts business; and bargaining harder for raw material procurement,” the HSBC note to clients said.
Great Offshore
CMP: Rs 568.40
TARGET PRICE: RS 644
Ask Raymond James has rated Great Offshore a ‘buy’ with a 12-month price target of Rs 644. “Offshore explorations services industry is in for an exciting outlook over next 5-10 years, citing the recently concluded NELP VI round wherein 24 deepwater and 10 shallow water blocks were awarded (out of total 55 blocks),” the ASK note to clients said.
“With diversified nature of fleet, largest fleet size, most of the terms committed till FY10 (estimated), 35% CAGR in earnings for FY07-10E (27% for FY07- 09E) and low financial leverage, we believe that the stock is available at a very good risk reward ratio,” the note added.
ICRA
CMP: Unlisted
RECOMMENDATION: Subscribe to the IPO
HDFC Securities has recommended subscribing to the initial public offering by Icra. “At a price band of Rs 275 – Rs 330, the stock is offered at 15.2 times – 18.2 times FY07 fully diluted EPS,” the HDFC note to clients said. “Given the steady economic growth, visibility in revenues on account of consolidation and widening of services, one could see continued growth in topline and bottomline of the company.
The new segments like the information technology services and outsourcing services could bring in large contracts from the IT sector, thus giving a thrust to margins going forward apart from diversifying revenue streams,” the note said, adding that any move in future by Moody’s to hike its stake in the company from the current 28.1% (post-issue) could be a further trigger.
GMR Infra
CMP: Rs 373.60
TARGET PRICE: Rs 502
MotilaL Oswal Securities has initiated coverage on GMR Infrastructure with a ‘buy’ rating. “GMR Infrastructure has a portfolio of 11 SPVs (special purpose vehicles) with a combination of fixed (annuity-based road project), fixed and volume driven (power and airports portfolio) and pure volume-driven businesses (toll-based road project),” the Motilal note to clients said.
“Based on the net asset value of the SPVs and the cash balance as on March 2007, we arrive at a net present value estimate of Rs 16,600 crore, translating into a price target of Rs502/share (an upside of 35.2%). Of this, airports account for 78% of the valuation, roads 4.6%, power 7.4% and cash balance 9.6%,” the note added.
Tayo Rolls
CMP: Rs 133.05
TARGET PRICE: Rs 220
Anand Rathi Securities has rated Tayo Rolls as a ‘buy’ with a price target of Rs 220. “Tayo Rolls exports around 30% of the rolls to developed markets like Europe and USA, where due to high cost, quite a few such facilities are being closed down and company is exploiting the opportunity being a high quality roll maker. Company’s clients list includes players like — Posco, Corus, Thyssen, China Steel, SSAB etc,” the Anand Rathi note to clients said.
According to the brokerage, Tayo’s exports to Europe are set to rise following the acquisition of Corus Steel by Tata Steel. “For the March 2007, company is likely to report EPS of Rs 20-21, there by discounting this earnings by just 6 times, which is very attractive for a Tata company with high growth potential,” the note added.
Markets Slide Continue
The World Cup kicked off this week. Frankly, that game looks much more interesting than the one being played on the bourses right now. Investors are now tiring of the bulls and bears slugging it out.
On Monday, the Sensex opened marginally higher at 12,902.63 (last close: 12884.99) and the Nifty marginally lower at 3734.60 (last close: 3761.65). Capital goods - L&T, BHEL, Punj Lloyd, Siemens -all gained. Sugar stocks too were gainers. Cement stocks were the major losers.
On Tuesday, the markets inched higher to close at 12,982.98 (Sensex) and 3,770.55 (Nifty). Capital goods and real estate stocks led from the front followed by auto, banking and tech stocks. Mid- and small-cap stocks too joined in the rally. The BSE Mid Cap closed higher at 5,353.83 (last close: 5,276.5) and the CNX Midcap closed at 4731.9 (last close: 4692.85).
On both days, FIIs were net buyers to the tune of Rs 395.7 crore and Rs 204.4 crore while mutual funds were net sellers to the tune of Rs 145.84 crore and Rs 13.48 crore.
On Wednesday the indices closed lower, the Sensex at 12,529.62 and the Nifty at 3,641.10. Banking stocks were the major losers followed by auto, metal and telecom stocks. The mid-cap indices closed lower at 5,246.38 (BSE Mid Cap) and 4,622.95 (CNX Midcap). FIIs turned into net sellers to the tune of Rs 84 crore. With the market falling, mutual funds entered to make their picks and were net buyers to the tune of Rs 38.22 crore.
The turnover on Wednesday was highest during the week: Rs 4,306 crore on BSE and Rs 8670.09 crore on NSE.
The markets ended flat on Thursday. Sensex closed at 12,543.85 and the Nifty at 3,643.60. FMCG and tech stocks stood their ground. The BSE Mid Cap and CNX Midcap too ended flat at 5,280.79 and 4,633.5, respectively. FIIs and mutual funds sold heavily and were net sellers to the tune of Rs 861.4 crore and Rs 206.35 crore respectively.
After opening the day with modest gains, the markets slipped to close the week in the red. The two new listings on Friday, Page Industries and Raj TV, felt the heat and were hammered. Finally, the Sensex closed at 12,430.4 and the Nifty at 3,608.55. Other than oil and gas, all other BSE sectors ended in the red. Capital goods and banking stocks too were badly hit. BSE Mid Cap closed at 5,235.57 and the CNX Midcap at 4,599.05. FIIs were net buyers to the tune of Rs 18.5 crore. Turnover too dipped to just Rs 3608.6 crore on the BSE and Rs 7058.77 crore on the NSE.
Banking stocks took a beating this week with HDFC Bank (-7.79 per cent), SBI (-7.08 per cent) and ICICI Bank (-5.69 per cent) all losing heavily. Reliance Communications lost the most at - 10.86 per cent and the biggest gainer was Dr Reddy's Laboratories at 3.39 per cent.
Board Meetings - March 19 2007
| Mar 19 2007 | Bayer Diagnostics India Ltd | Bayer Diagnostics India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007, to approve and take on record the Annual Audited Financial Results and to recommend dividend, if any, on the equity shares for the year ended December 31, 2006. |
| Mar 19 2007 | Dalmia Cement (Bharat) Ltd | Interim DividendDalmia Cements Bharat Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007, inter alia, to consider payment of interim dividend for the year ended March 31, 2007.(As Per BSE Announcement Website Dated on 07/03/2007) |
| Mar 19 2007 | Gujarat Flourochemicals Ltd | Gujarat Fluorochemicals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007 to consider a proposal for declaration of Interim Dividend for the financial year 2006-07. |
| Mar 19 2007 | India Infoline Ltd | India Infoline Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 21, 2007, inter alia, to consider, declaration of Interim Dividend on equity shares for the financial year ending March 31, 2007.With reference to the earlier announcement dated March 09, 2007 regarding Board Meeting on March 21, 2007 to consider interim dividend, India Infoline Ltd has now informed BSE that the same meeting of the Board of Directors of the Company will now be held on "March 19, 2007" instead of "March 21, 2007", to consider declaration of Interim Dividend on equity shares for the financial year ending March 31, 2007.(As Per BSE Announcement Website Dated on 09/03/2007) |
| Mar 19 2007 | OCL India Ltd | OCL India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007, to consider declaration of an Interim Dividend on equity shares.OCL India Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on March 19, 2007, will also consider the Scheme(s) of Arrangement for the demerger of (i) Sponge Iron & Steel and (ii) Real Estate operations of the Company.(As Per BSE Announcement Website Dated on 12/03/2007) |
| Mar 19 2007 | RSWM Ltd | RSWM Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007, to consider declaration of Interim Dividend for the Financial Year 2006-07.RSWM Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on March 19, 2007 to consider declaration of Interim Dividend for the Financial Year 2006-07. Further the Company has informed that, the said meeting shall also consider investment proposals.(As Per BSE Announcement Website Dated on 12/03/2007) |
| Mar 19 2007 | Ruchi Strips & Alloys Ltd | Ruchi Strips & Alloys Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007, inter alia, for considering the conversion of 5,65,256 Fully Convertible Debentures (FCD) of Rs 100/- each by allotting 55,69,025 Fully paid-up Equity Shares of Rs 10/- each at premium of Rs 0.15 per Equity Share, to IFCI Ltd. |
| Mar 19 2007 | Sanra Software Ltd | Sanra Software Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 19, 2007 to take on record the Share Purchase agreement dated March 10, 2007 entered between the existing promoters of the Company and M/s. Eyelight Events and Promotions (India) Pvt Ltd for the sale of 26,26,200 shares amounting to 43.41% of the paid up capital of the Company. |
| Mar 19 2007 | Sterling Tools Ltd | Sterling Tools Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 15, 2007, to consider and if thought fit, to declare the Interim Dividend for the Financial Year 2006-2007.Sterling Tools Ltd has informed BSE that the meeting of the Board of Directors of the Company which was scheduled to be held on March 15, 2007 has been rescheduled due to some unavoidable circumstances / exigencies and will be held on March 19, 2007, agenda for which includes considering and if thought fit, to declare the Interim Dividend for the Financial Year 2006-2007.(As Per BSE Announcement Website Dated on 08/03/2007) |
Board Meeting Update - March 17 2007
| Mar 17 2007 | Adani Enterprises Ltd | Adani Enterprises Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, for considering a proposal to declare interim dividend for the year 2006-07.Further the Company has informed that, March 23, 2007 has been fixed as the Record Date for the purpose of payment of interim dividend. |
| Mar 17 2007 | Asahi India Glass Ltd | Asai India Glass Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider, the declaration of Interim Dividend, if any, on equity shares of the Company. |
| Mar 17 2007 | Astrazeneca Pharma India Ltd | AstraZeneca Pharma India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider the following business:1. To consider revocation of recommended Dividend for the year ended December 31, 2006.2. To consider payment of Interim Dividend for the year ended December 31, 2006.3. To consider the approval of the revised Audited Accounts for the financial year endedDecember 31, 2006, after incorporating necessary changes as to the revocation ofrecommended dividend and payment of Interim Dividend for period ended December 31, 2006 and to make consequential changes in the Notice for the AGM and the Directors' Report. |
| Mar 17 2007 | Bank of Baroda | Bank of Baroda has informed BSE that a meeting of the Board of Directors of the Bank will be held on March 17, 2007, inter alia, for considering a proposal to declare Interim Dividend for the year 2006-07.Further the Company has informed that, March 23, 2007, has been fixed as the Record Date for the purpose of payment of interim dividend. It has also been decided to fix March 30, 2007 as the Payment Date for the said purpose subject to as above. |
| Mar 17 2007 | Divis Laboratories Ltd | Divis Laboratories Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter-alia, to consider and declare interim dividend on Equity Shares of the Company for the year ended March 31, 2007. |
| Mar 17 2007 | Emami Ltd | Emami Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider, payment of interim dividend on the equity shares of the company for the Financial Year ended March 31, 2007. |
| Mar 17 2007 | Ginni Filaments Ltd | Interim DividendGinni Filaments Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007 to declare Interim Dividend on Equity Shares in respect of financial year ending March 31, 2007.Further the Company has informed that, the meeting of the Committee of Board on March 26, 2007 for declaration of Interim Dividend has been withdrawn by the Company.(As per BSE Bulletin Dated on 07/03/2007) |
| Mar 17 2007 | Kamla Dials & Devices Ltd | Kamla Dials & Devices Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, for the allotment of 10,40,000 equity shares and 4,60,000 Zero Coupon Convertible Warrants at a price of Rs 57/- each under section 81(1A) of the Companies Act, 1956 read with Chapter XIII of SEBI(DIP) Guidelines. |
| Mar 17 2007 | Madras Aluminium Co Ltd | Madras Aluminium Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider the payment of Interim Dividend for the year 2006-07. |
| Mar 17 2007 | Novartis India Ltd | Novartis India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider the proposal for payment of Interim Dividend for the financial year ended March 31, 2007.Further the Company has informed that, March 23, 2007 has been fixed as the Record Date for the purpose of payment of interim dividend. |
| Mar 17 2007 | Poly Medicure Ltd | Poly Medicure Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider the allotment of PreferentialWarrants to Promoters of the Company, in terms of SEBI (DIP) guidelines, ShareholdersResolution passed on September 05, 2006 through Postal Ballet for issue and allotment of Preferential Securities. |
| Mar 17 2007 | Power Finance Corporation Ltd | Power Finance Corporation Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, for considering the revision of the Company's own Prudential Norms for its lending operations. |
| Mar 17 2007 | Ruchi Strips & Alloys Ltd | Ruchi Strips & Alloys Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, for considering the conversion of 5,65,256 0% Optionally Fully Convertible Debentures (OFCD) of Rs 100/- each by allotting 5,65,256 Fully Convertible Debentures (FCD) of Rs 100/- each to IFCI Ltd. |
| Mar 17 2007 | Shipping Corporation of India Ltd | Shipping Corporation of India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 16, 2007, inter alia, to consider declaration of interim dividend if any for the year 2006-07.Shipping Corporation of India Ltd has informed BSE that the meeting of the Board of Directors of the Company which was scheduled to be held on March 16, 2007 will now be held on March 17, 2007, inter alia, to consider declaration of interim dividend if any for the year 2006-07.(As Per BSE Announcement Website Dated on 08/03/2007) |
| Mar 17 2007 | Torrent Cables Ltd | Torrent Cables Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider declaration of Interim Dividend for the year 2006-07. |
| Mar 17 2007 | Torrent Pharmaceuticals Ltd | Torrent Pharmaceuticals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider declaration of Interim Dividend for the year 2006-07.Further the Company has informed that, March 26, 2007 has been fixed as the Record Date for the purpose of payment of Interim Dividend. The payout of the said Interim Dividend if declared will be on & from March 30, 2007. |
| Mar 17 2007 | Torrent Power Ltd | Torrent Power Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on March 17, 2007, inter alia, to consider declaration of Interim Dividend for the year 2006-07. |
What’s hot, what’s not with mutual funds
With investors seeking global cues amid a volatile stock market, domestic mutual funds have put up a decent performance in February, stepping up their investments in the debt market, whileremaining net sellers in equity.
With the overall assets under management of mutual funds swelling to Rs3,53,309.04 crore at the end of February, the month which triggered the bearish mood in the markets witnessed MFs remaining net sellers with Rs274 crore.
Debt markets surprisingly seemed to attract fund managers more than the equity markets, as MFs bought securities to the tune of Rs10,352 crore and sold only Rs7,683 crore.
This pegs their investment for the month at Rs2,669 crore—around Rs200 crore more than their investment at the end of January 2007, prolonging the 11-month trend from April 2006.
In equity, sectors like construction, realty, pharma, textiles, infrastructure and telecom were the favourite picks for the fund houses in February, while stocks were realigned in the FMCG and metal pack—resulting in a net investment of Rs12,697.09 crore during the 28 days.
The love affair with hot sectors such as cement, construction, manufacturing, auto, chemical and oil and gas stocks continued unabated as they figured heavily on investors buying list. In the last lap of the month, which culminated in the Union Budget 2007 being tabled by the finance minister, the BSE benchmark index Sensex which started off at 14,124.36 shed 1,186 points to end at 12,938.09 points on 28 February. Experts feel mutual funds might have missed a trick or two as the more than 1,000-point slide failed to spur them to step up buying as they sold shares worth about Rs12,971.14 crore during the volatile period. MFs may have pulled back a little by joining the IPO party in a big way with Power Finance Corporation and Firstsource Solutions being the hot favourites. Equity funds purchased shares worth Rs232.40 crore of PFC and another Rs56 crore shares of Firstsource.
Among other stocks that debuted, Indian Bank drew Rs65.55 crore worth funds, while IndusFila (Rs21.53 crore), Redington India (Rs16.17 crore) and SMS Pharmaceuticals accounted for Rs10 crore funds MFs, data compiled by brokerage firm Sharekhan shows.
In terms of value, TCS, ICICI Bank and Power Finance Corporation were the top purchases in existing holdings by MFs pooling in Rs1,168.85 crore for the big-ticket scrips.
Other stocks, which gripped the MF fancy last month were Akruti Nirman, Bartronics India, ASC Enterprises.
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