Pick of the Week - Gateway Distriparks Ltd

GDL is expected to benefit from improving infrastructure and policy initiatives like entry of private players in the rail freight business. It has also moved up the value chain through acquisitions in the cold storage business and become an integrated logistics solution provider.

Company Background

Gateway Distriparks (GDL) is a one of the major private players in handling, transport and storage of containers, warehousing of cargo and various value added services provided in relation to import and export of cargo in containers. GDL is an Indo-Singapore joint venture and has been promoted by Prism International Pte Ltd. Windmill International Pte Ltd and Thakral Corporation.

The company has modern Container Freight Station's (CFS's) at Dronagiri (about 9 kms from the Jawaharlal Nehru Port ), Navi Mumbai and New Manali, Chennai besides an Inland Container Depot (ICD) at Garhi Harsaru (near Delhi ), Haryana and a newly commissioned CFS at Vishakapatam (a joint venture with Suri Group).

In March 2005 the company raised Rs 79.2 crores by way of initial public offer (IPO). GDL offered 1.1 crore shares of Rs 10 each at a premium of Rs 62. In December 2005, GDL raised Rs 384.6 crore by way Global Depository Receipts (GDR) at a price of Rs 230.87 per share.

The company has recently proposed a bonus issue in ratio of 1:4.

Investment Rationale

Container Freight industry to grow at a rapid pace
India container freight business is expected to grow by 4 times in the next 6-8 years to 20,000,000 Twenty Foot Equivalent Units (TEU). To capitalize on the growth opportunity, GDL has enhanced its presence by establishing Container Freight Stations (CFS) and Inland Container Depots (ICD) at strategic locations like Navi Mumbai, Vizag, Chennai, Gurgaon, Faridabad , Haryana, Ludhiana and Kochi . These CFSs and ICDs provide GDL with access to 90% of Container Freight Corridors of India and would enable it to ramp up its revenues going ahead.

Entry into cold storage to derisk business
GDL has acquired 50.1% stake in Snowman Frozen Foods Ltd (SFFL) for Rs 48 crore. The acquisition would enable GDL to forward integrate into the cold storage business and become an integrated logistics player. The acquisition would help GDL to diversify and de-risk its business by providing an additional revenue stream. GDL can also look at exploring business opportunities with other stakeholders like Mitsubishi Logistics Corporation and Nichirei Logistics Group Inc. who hold the balance stake in SFFL.

JV with Concor to transition GDL into an end-to-end rail transportation service provider
The rail freight business was recently opened to the private sector. GDL formed a subsidiary Gateway Rail Freight Pvt Ltd (GRFPL) and acquired an all India operating license from the Indian Railway for an upfront payment of Rs 50 crore. It formed a joint venture with Container Corporation (Concor) to construct and operate a rail linked ICD at Garhi, Harsaru, Gurgaon, which will connect the North Central Region (NCR) with the western ports. GRFPL will hold 51% in the joint venture while remaining 49% will be held by Concor. GDL and Concor will share the rail operations for movement of rakes from the Garhi ICD to ports equally. The joint venture would enable GDL to run rakes from the ICD, which as not allowed under the earlier agreement with Concor. The integrated services from the ICD would enable a strong growth in volumes and help GDL to become an end-to-end container rail transportation service provider. Additionally, GDL will also earn lease rentals from the land leased out to the joint venture.

Better infrastructure and policy initiatives
The Government’s impetus on promoting FDI for construction of small ports at various locations will provide an impetus to Export-Import trade volumes and thus provide a boost to the container freight segment. India’s two major ports JNPT an Chennai, which control 80% of the container freight business are constructing new terminals to decongest the ports. The improved infrastructure and decongestion of the ports would enable GDL to capitalize on the opportunity.

Key Concerns

Low entry barrier
The container freight business is characterized by low barrier to entry. Any player with significant investment capacity can enter the business.

Idle cash balance
The company has Rs 157 crores of fixed deposits. GDL earns an interest of 8.5% on the same. The company has kept this cash balance to finance future acquisitions. GDL’s Return on equity will be impacted till the cash balance is not utilized.

Financials:

GDL is expected to benefit from improving infrastructure and policy initiatives like entry of private players in the rail freight business. It has also moved up the value chain through acquisitions in the cold storage business and become an integrated logistics solution provider. We expect GDL’s consolidated sales to grow from Rs 160.99 crore to Rs 240 crore and net profit to post a 28% growth to Rs 99 crore in Fy08E. For FY09E, we expect the company to report sales of Rs 300 crore and a net profit of Rs 124 crore.

Valuations

GDL with pan-India presence and good connectivity with the major ports is well poised to take advantage of the strong growth in the container freight industry. It would be able to ramp up its volume by entering into newer areas like cold storage and rail transportation services. In addition, the company is actively scouting companies for acquisition, which would trigger further upside in the stock. At the current price of Rs 182 the stock trades at a P/E of 16.3x FY09E EPS of 11.13 (on post bonus dilued equity of Rs 115 crore), which is at 22% discount to the average industry P/E of 20. Given the huge business potential and de-risked business model we rate the stock an OUTPERFORMER with a price target of Rs 220, an upside potential of 20% in the next 6 months.

Technical Outlook

The stock has formed a long-term support at Rs 173,levels. Stock is currently trading above its 200 days moving average . On the weekly charts stock has formed the double bottom formation pattern. The MACD indicators are in the oversold zone and have a bullish crossover. On the weekly charts average volume have increase 6 times compared to the pervious week, which indicate the strong buying was witness at around 179 levels. The RSI indicators have also gained strength and remain in neutral territory. Short Term Averages are on the verge of a positive crossover. Once the stock move above Rs 187 levels, we can see it could further move up to Rs198 levels, closing above this level can further move up the stock to Rs 213 levels very soon. Medium term and long term resistances remain at Rs 193 and Rs 213 levels.

Havell's India, Mahindra & Mahindra, HPCL

HSBC in their report on Havell's India

We lower sales expectations on volatile copper prices; cut standalone EPS forecast by 11% and 20% for FY08e and FY09e to INR26.3 (+38% y-o-y) and INR32.1 (+22.4%)
Sylvania acquisition should be earnings-accretive even at 10% equity dilution; consolidated EPS for FY08e and FY09e estimated at INR34.4 and INR39.4, 31% and 23% higher than standalone, respectively Await more information on the acquisition; retain Overweight (V) rating and revise target price to INR631 from INR635

HSBC in their report on Mahindra & Mahindra say,

PAT for core auto and farm equipment business up 11.6% y-o-y, and for the remaining divisions, up 147% for FY07 We estimate contribution of non-auto and tractor business to total EPS is likely to go up to 57.5% in FY08 from 48.6%
currently Maintain Overweight with sum-of-parts valuation based target price of INR950/share. Restructuring of auto-parts business and potential IPO of hospitality division should help off-set lower value of auto and tractor divisions

Man Financial in their report on Mahindra & Mahindra

Mahindra and Mahindra's (M&M) Q4FY07 results were in line with our estimates, both on the top-line and bottom-line front. However, operating margins were under pressure and fell 50bps YoY to 11.4%, below expectations. M&M stock is down by about 24% from its peak in January 2007, turning the valuations attractive. We continue to believe that M&M is one of the best plays on the growing Indian automotive industry from a long-term perspective. Maintain BUY with target of Rs 1060, based on SOTP valuation.

Merrill Lynch in their report on HPCL

Attractive dividend yield, P/BV of 0.99; retain Buy
HPCL's FY07 EPS, at Rs46.4, is almost 4x FY06 EPS of Rs12. Quality of FY07 earnings is admittedly poor as it is entirely attributable to oil bonds. There is also uncertainty on FY08E earnings. However, recent government decisions suggest bond issue may be generous even in FY08. HPCL's dividend yield is attractive - 6.5% for FY07 and 5.4% for FY08E. It is also cheaper than peers on PE and is trading marginally below estimated NAV. We retain our Buy rating on HPCL.

Board Meetings - June 2 2007 - June 12 2007

Jun 2 2007	Archies Ltd	Archies Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 02, 2007, inter alia, has appointed officer of the Company for allotting the Equity Shares and Warrants convertible into Equity Shares on preferential basis.
Jun 2 2007	Century Plyboards (India) Ltd	Century Plyboards India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, for considering the following:1. To consider draft Scheme of Amalgamation along with valuation report for amalgamation of the following three Companies with the Company:a. Century Panels Pvt Ltdb. Sharon Veneers Pvt Ltdc. Sharon Wood Industries Pvt Ltd(All engaged in manufacturing of Plywood related products)2. To decide date, time and venue of the next Annual General Meeting of the Company.3. To fix record date for next Annual General Meeting.
Jun 2 2007	CT Cotton Yarn Ltd	Audited Results
Jun 2 2007	Gujarat NRE Coke Ltd	Gujarat NRE Coke Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, to transact the following business:1. To consider and take on record the Audited Financial Results of the Company for the financial year ended March 31, 2007.2. To recommend a Dividend, if any, for the financial year 2006-2007 subject to the approval of members.3. To consider issuance of Grants to eligible employees under GNCL Employee Stock Option Scheme, 2007.4. To apply for Delisting of Equity Shares from The Calcutta Stock Exchange Association Ltd pursuant to the approval of the members vide resolution passed through Postal Ballot on April 16, 2007.5. To consider making investment and / or giving loan and / or issue guarantee to M/s. Gujarat NRE Pty Ltd., a wholly owned subsidiary of the Company.6. To fix date for closure of Share Transfer Registers and Register of Members of the Company for the purpose of holding 20th Annual General Meeting.7. To
Jun 2 2007	Hotel Rugby Ltd	Hotel Rugby Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, to decided about disposal of the Company's building and also the Company's investment in its subsidiary.
Jun 2 2007	Jenburkt Pharmaceuticals Ltd	Jenburkt Pharmaceuticals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, to consider and take on record the Audited Financial Results and to recommend dividend, if any, for the financial year ended on March 31, 2007.
Jun 2 2007	Kriti Industries (India) Ltd	Audited Results
Jun 2 2007	Nam Credit & Investment Consultants Ltd	Nam Credit & Investment Consultants Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, to transact the following business:1. To consider & take on record of the certificate of registration of merger of M/s. Three-D Communications Ltd. with the Company.2. To approve the list of allottees of shareholders of the transferor Company M/s. Three-D Communications Ltd consequent upon the merger with the Company, to whom the equity shares of the Company are to be allotted in the ratio of 1:1 as merger scheme approved by the Hon'ble High Court.3. To review the report of the Consultants on the proposed merger of the M/s. Bharatiya Global Infomedia Ltd with the Company.
Jun 2 2007	OK Play India Ltd	OK Play India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 19, 2007, inter alia, has considered the following:1. The Board has reviewed the progress of issue of Global Depository Receipts (GDRs). The Board has also noted the receipts of the in-principal approvals from The Bombay Stock Exchange Ltd (BSE) and the Singapore Stock Exchange (SGX) and approved some of the documents / agreements required to issue Global Depository Receipts.2. Thereafter, the meeting was adjourned till May 22, 2007 at the same time and place.The meeting has been adjourned to May 25, 2007.(As Per Board Decision BSE Bulletin Dated on 25/05/2007)OK Play India Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 25, 2007, inter alia, has reviewed the progress of the proposed issue of Global Depository Receipts (GDRs) and the meeting has been adjourned to May 28, 2007.(As Per Board Decision BSE Bulletin Dated on 28/05/2007)OK Play I
Jun 2 2007	Precision Electronics Ltd	Audited Results
Jun 2 2007	Saksoft Ltd	Saksoft Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 28, 2007, inter alia, to transact the following:1. Audited Financial results for the year ended March 31, 2007 and2. Recommend dividend, if any, for the year ended March 31, 2007.Saksoft Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on May 28, 2007 stands postponed to June 02, 2007 with the same agenda.(As Per BSE Announcement Website Dated on 25/05/2007)Saksoft Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on June 02, 2007 stands cancelled, owing to unavoidable circumstances.(As Per BSE Announcement Website Dated on 31/05/2007)
Jun 2 2007	Tamil Nadu Newsprint & Papers Ltd	Tamil Nadu Newsprint & Papers Ltd (TNPL) has informed BSE that a meeting of the Board of Directors of the Company will be held on June 02, 2007, inter alia, to consider and approve the Audited Financial Results of the Company for the year ended March 31, 2007 and also to recommend dividend, if any, for the year ended March 31, 2007.

Jun 4 2007	Aristocrat Luggage Ltd	Aristocrat Luggage Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 14, 2007, inter alia, to consider the following:1. Approval of audited annual accounts for the year ended March 31, 2007.2. Proposal of Amalgamation of the Company with V.I.P. Industries Ltd.Aristocrat Luggage Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on May 14, 2007, has been postponed to June 04, 2007:The Board in the meeting now scheduled to be held on June 04, 2007, inter alia, will consider the following.(As Per BSE Announcement Website Dated on 10/05/2007)
Jun 4 2007	Balkrishna Industries Ltd	Balkrishna Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, for the following purpose:1. To approve Audited Balance Sheet for the year ended March 31, 2007.2. To recommend payment of final dividend, if any.3. To finalize modalities of transferring the Paper business and Textile business operations of the Company to its wholly owned subsidiaries viz. Balkrishna Paper Mills Ltd and Balkrishna Synthetics Ltd.
Jun 4 2007	Bodal Chemicals Ltd	Bodal Chemicals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to consider paying of interim dividend on Equity shares and Preference Shares for the financial year 2006-07.
Jun 4 2007	Cinevistaas Ltd	Cinevistaas Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to consider the following:1. Allotment of Convertible warrants under the Preferential Issue, approval for which has been granted by the members in their meeting held on May 21, 2007. However, the allotment shall be subject to the in-principle approval to be received from the Stock Exchanges.2. Filing return of allotment with ROC.3. Filing of form 23 with ROC.
Jun 4 2007	Donear Industries Ltd	Donear Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to consider the raising of funds through Global Depository Receipts (GDR), American Depository Receipts (ADR) convertible bonds in India & Abroad or through any other instruments (Securities) as may be permitted by Law.
Jun 4 2007	Ester Industries Ltd	Audited Results
Jun 4 2007	Golden Legand Leasing & Finance Ltd	Audited Results
Jun 4 2007	Greenply Industries Ltd	Greenply Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to transact the following:1. To consider, approve and take on record the Audited Financial Results and also Consolidated Audited Financial Results for the year ended March 31, 2007.2. To consider and recommend final dividend for the financial year 2006-2007.3. To convert 1,45,000 Convertible Warrants No. 1 into equity shares of the Company.
Jun 4 2007	K.B.Steel Ltd	KB Steel Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to consider and approve the Audited Financial Results for the Year ended March 31, 2007 and recommend dividend, if any.
Jun 4 2007	Krebs Biochemicals & Industries Ltd	Audited Results
Jun 4 2007	Mcleod Russel India Ltd	Mcleod Russel India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, for the following purposes:1. To consider and approve the Company's Audited Balance Sheet as on March 31, 2007 and the Profit & Loss Account for the year ended on that date together with relative Schedules thereto.2. To consider recommendation of Dividend.3. To consider, approve and take on record the Company's Audited Financial Results for the Financial Year ended March 31, 2007.
Jun 4 2007	Modison Metals Ltd	Modison Metals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to consider sub-division of the Company's Equity Shares of Rs 10/- each subject to approval of Members at the forthcoming Extraordinary General Meeting and consider and approve the Notice of the Extraordinary General Meeting of the Company.
Jun 4 2007	Nahar Exports Ltd	Nahar Exports Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to approve and take on record of the Audited Financial Results for the year ended on March 31, 2007 and to recommend dividend on Equity Shares for the year 2006-2007.
Jun 4 2007	Nahar Spinning Mills Ltd	Dividend & Audited ResultsNahar Spinning Mills Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to approve and take on record the Audited Financial Results for the year ended on March 31, 2007 and to recommend dividend on Equity Shares for the year 2006-2007.(As Per BSE Announcement Website Dated on 31/05/2007)
Jun 4 2007	National Organic Chemical Industries Ltd	National Organic Chemical Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to consider and approve the audited financial results of the Company for the year ended March 31, 2007 and to recommend payment of dividend, if any, for the year 2006-2007.
Jun 4 2007	Onward Technologies Ltd	Audited Results
Jun 4 2007	Shreyans Industries Ltd	Audited ResultsShreyans Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007 to consider the Preferential Issue of Fully Convertible Warrants.(As Per BSE Announcement Website Dated on 31/05/2007)
Jun 4 2007	Southern Ispat Ltd	Audited Results
Jun 4 2007	Tata Investment Corporation Ltd	Tata Investment Corporation Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to consider the audited financial accounts and recommendation of dividend for the year ended March 31, 2007.
Jun 4 2007	Tezpore Tea Company Ltd	Tezpore Tea Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, to approve the Annual Accounts for the year ended March 31, 2007, and consider dividend, if any.
Jun 4 2007	V I P Industries Ltd	VIP Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be VIP Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 14, 2007, inter alia, to consider the following:1. Approval of audited annual accounts for the year ended March 31, 2007.2. Recommendation of dividend to the shareholders, if any.3. Proposal of Amalgamation of Aristocrat Luggage Ltd and Quality Plastics Ltd with the Company.VIP Industries Ltd has informed BSE that the meeting of the Board of Directors of the Company which is scheduled to be held on May 14, 2007, has been postponed to June 04, 2007.The Board in the meeting now scheduled to be held on June 04, 2007, inter alia, will consider the following:1. Approval of audited annual accounts for the year ended March 31, 2007.2. Recommendation of dividend for the year 2006-2007 to the shareholders, if any.3. Proposal of Amalgamation of Aristocrat Luggage Ltd and Quality Plastics
Jun 4 2007	Veer Energy & Infrastructure Ltd	Jhantla Investments Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 04, 2007, inter alia, to Fix Record Date for Issue & Allotment of Bonus Equity shares to the Shareholders of the Company in the ratio of 1:2.
Jun 4 2007	Williamson Financial Services Ltd	Audited Results
Jun 4 2007	Williamson Magor & Company Ltd	Audited Results

Jun 5 2007	Diamond Cables Ltd	Diamond Cables Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007 to approve conversion of 12,50,000 Fully Convertible Debentures held by Clearwater Capital Partners (Cyprus) Ltd into Equity Shares.
Jun 5 2007	M P Oils & Fats Ltd	MP Oils & Fats Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, inter alia, to consider the following business:1. Change of name of the Company from "M.P. Oils and Fats Ltd" to "Sweta Infrastructures Ltd" or "Sweta Urban Developers Ltd" or "Sweta Infrastructure Development Ltd" as may he allowed by the Registrar of Companies.2. The alteration of Main Objects Clause of Memorandum of Association subject to approval of Members by Postal ballot since the main business activity is now in the field of infrastructure development, construction and Real Estate development. The business of edible oils has been stopped.3. Shifting of registered Office from State of Maharashtra to the State of Andhra Pradesh subject to approval of Members by Postal ballot and Company Law Board, Western Region Bench, Mumbai.4. Appointment of Mr. Ravi Chakravarthy as Additional Director of the Company.5. Appointment of Mr. P V M Ramana Kumar as Additional Di
Jun 5 2007	Mahindra Forgings Ltd	Mahindra Forgings Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, inter alia, for considering the proposed amalgamation of Mahindra Stokes Holding Company Ltd, Mahindra Forgings Overseas Ltd and Mahindra Forgings Mauritius Ltd with the Company and considering the share swapratio.
Jun 5 2007	NIIT Ltd	NIIT Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, inter alia, to transact the following businesses :1. To consider and take on record the audited Accounts of the Company for the financial year ended March 31, 2007.2. To consider and recommend dividend for the financial year 2006-07, if any.3. To fix the Record Date / Book Closure dates for ascertainment of members / list of beneficiary owners of the Company to be entitled for payment of Dividend, if any, for the financial year 2006-07; and4. To fix the date, time and venue for the Annual General Meeting (AGM) of the Company.
Jun 5 2007	Rain Commodities Ltd	Rain Commodities Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, inter alia, to consider the following:1. Take on record the Audited Financial Results for the Quarter and year ended March 31, 2007.2. Recommend dividend on Equity Shares for the Financial year ended March 31, 2007.
Jun 5 2007	Siyaram Silk Mills Ltd	Siyaram Silk Mills Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, to consider Annual Accounts for the year ended March 31, 2007, and Dividend if any.
Jun 5 2007	Vajra Granites Ltd	Audited Results
Jun 5 2007	Vardhman Polytex Ltd	Vardhman Polytex Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 05, 2007, inter alia, to consider and approve Audited Financial Results of the Company for the year ended March 31, 2007 and to consider the declaration of final dividend, if any, to the Shareholders of the Company.

Jun 6 2007	Alfred Herbert (India) Ltd	Alfred Herbert India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, to consider Accounts for the year ended March 31, 2007, recommend dividend, if any, take on record Audited Financial Results etc.
Jun 6 2007	Assam Company Ltd	Assam Company Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider, the following:1. The Audited Financial Results of the Company for the year ended December 31, 2006.2. The recommendation of dividend.3. The issue of securities.
Jun 6 2007	BASF India Ltd	BASF India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider the following:1. To consider and take on record the Audited Financial Results for the Financial Year ended March 31, 2007.2. Recommendation of dividend on the equity shares of the Company, subject to the approval of Members at the 63rd Annual General Meeting of the Company.
Jun 6 2007	C S Software Enterprise Ltd	CS Software Enterprise Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider the following business:1. Issue of equity shares of the Company to a selected group of persons on preferential basis.2. Issue of equity shares / warrants convertible into equity shares of the Company to the promoters / persons belonging to the promoter group.3. Convening an Extra Ordinary General Meeting of the members of the Company for obtaining the prescribed approval of the members of the Company for the preferential issue and to approve the draft notice of the EGM.
Jun 6 2007	Cyber Media (India) Ltd	Cyber Media India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, to consider and approve the audited financial results of the Company, stand alone and consolidated, for the year ended March 31, 2007 and also to consider dividend.
Jun 6 2007	Gujarat State Petronet Ltd	Gujarat State Petronet Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider the Audited Financial Results of the Company for the year ended March 31, 2007 and to recommend dividend, if any, for the financial year 2006-2007.
Jun 6 2007	Ispat Industries Ltd	Ispat Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider, the Audited Financial Results of the Company for the financial year ended March 31, 2007.
Jun 6 2007	Nakoda Textile Industries Ltd	Nakoda Textile Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, to consider preferential issue of Share Warrants / FCD's to promoters and persons other than promoters.
Jun 6 2007	Netlink Solutions (India) Ltd	Netlink Solutions India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider and approve the following:1. Audited Financial Results for the financial year ended March 31, 2007.2. Recommendation of dividend for the financial year 2006-07.3. Alteration of Objects clause of Memorandum of Association.
Jun 6 2007	PVR Ltd	Audited Results
Jun 6 2007	Remy Electricals India Ltd	Delco Remy Electricals India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007 to transact the following:1. Consider audited financial results of the Company for the year ended March 31, 2007.2. To reappoint Mr. B S Sahney as Managing Director for a further period effective July 29, 2007.3. To fix date for annual general meeting.
Jun 6 2007	Satra Properties (India) Ltd	Satra Properties India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, inter alia, to consider the following Business:1. To appoint Shri. Vijay N Satra as Additional Director of the Company.2. To accept the resignation of Shri. Chandrakant M Kothari, who is proposed to be appointed as Director in Satra Property Developers Pvt Ltd., a subsidiary of the Company.3. To appoint Smt. Minaxi P Satra, as Chairman of the Company in place of Shri. Praful N Satra, who shall continue as a Managing Director of the Company.4. To adopt the Insider Trading Code, as required under the SEBI (Prohibition of Insider Trading) Regulation, 1992.5. To adopt the Code of Conduct for the Board of Directors of the Company.6. To adopt the Risk Management Systems.
Jun 6 2007	Surana Industries Ltd	Audited Results
Jun 6 2007	Suryalata Spinning Mills Ltd	Suryalata Spinning Mills Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007 to consider and evaluate various restructuring options for the different business units of the Company.
Jun 6 2007	Vista Pharmaceuticals Ltd	Vista Pharmaceuticals Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 06, 2007, for the purpose of issue of convertible warrants under preferential offer to the proposed following investors:1. Vista Pharmaceuticals Inc (Promoter): 10,62,000 no. of warrants2. Dr. Dhananjaya Alli (Promoter): (to be exercised in 2 financial years)3. Dr. Padmavathy Alli (Promoter): (to be exercised in 2 financial years)4. Ms. Roshni Alli (Promoter): (to be exercised in 2 financial years)5. Mr. D Gopal (Non-Promoter): 4,53,000 no. of warrants6. Dr. B Srinivas (Non-Promoter): 7,55,000 no. of warrants7. Dr. Keshav Murthy Shivashankar (Non-Promoter): 16,00,000 no. of warrantsFurther the Company has informed that, the Board will also consider increase in Authorized Capital from Rs 11.50 Crores to Rs 15.00 Crores and convening of EGM for the above said purpose.

Jun 7 2007	AIA Engineering Ltd	AIA Engineering Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, inter alia, to consider, approve & take on record the Audited Annual Financial Results of the Company for the year ended March 31, 2007 & also to recommend dividend, if any, on Equity Share Capital for the Financial Year 2006-07.
Jun 7 2007	G V Films Ltd	GV Films Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, to consider and decide the proposal for investments, joint ventures, co-production with K Sera Sera Productions Ltd, who have produced successful films like SARKAR, AB TAK CHAPPAN, EK HASINA THI, GOLMAAL, DARNE MANE HAI.
Jun 7 2007	J D Orgochem Ltd	JD Orgochem Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, inter alia, to consider approval of Draft of Scheme of Compromise / Arrangement Between the Company, Secured Creditors and Equity Shareholders under provisions of Section 391 to 394 of the Companies Act, 1956.
Jun 7 2007	K Sera Sera Productions Ltd	K Sera Sera Productions Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, inter alia, to discuss the Investment / Jointventure / Co-production deal with GV Films Ltd, a name to be reckoned in the South Indian Film Industry with films like Nayagan, Thalapathi etc to its credit.
Jun 7 2007	MSP Steel & Power Ltd	Audited Results
Jun 7 2007	NRB Bearings Ltd	NRB Bearings Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, inter alia, to consider adoption of audited quarterly financial results for the quarter ended March 31, 2007 and audited accounts for the year ended March 31, 2007 and payment of final dividend for the accounting year 2006-07.
Jun 7 2007	Pradeep Metals Ltd	Audited Results
Jun 7 2007	Proto Infosys Ltd	Audited ResultsProto Infosys Ltd has informed BSE that the meeting of the Board of Directors of the Company which was scheduled to be held on May 31, 2007 to consider and approve the Audited Results for the Quarter and year ending March 31, 2007 has been adjourned and will now be held on June 07, 2007 to transact the following business:1. To consider and approve audited results for the Quarter and year ending March 31, 2007.2. To consider and recommend dividend for FY 2006-07.(As Per BSE Announcement Website Dated on 31/05/2007)
Jun 7 2007	Sanco Trans Ltd	Audited Results
Jun 7 2007	Sundaram Brake Linings Ltd	Sundaram Brake Linings Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, for the following purpose:1. Consideration and Declaration of Third Interim Dividend, if any, for the Year Ended March 31, 2007.2. Consideration and approval of Audited Financial Results of the Company for the Year Ended March 31, 2007.
Jun 7 2007	Swarna Securites Ltd	Audited Results
Jun 7 2007	Switching Technologies Gunther Ltd	Switching Technologies Gunther Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 07, 2007, inter alia, to consider the following business:1. To consider the resignation letter dated May 31, 2007 submitted by the whole-time Director of the Company Mr. C Venkataraman.2. To appoint Mr. Michel Vandervelpen as Additional Director of the Company.3. To nominate authorized signatories on behalf of the Company in respect of various statutory governmental and other authorities, pursuant to the resignation of Mr. C Venkataraman.4. To nominate and prescribe authorized signatories for operating the bank account of the Company with signing capacity and limits.Further the Company has informed that, Mr. C Venkataraman, Whole-time Director of the Company has submitted his resignation on May 31, 2007 with the request to accept the same with immediate effect. Accordingly, a meeting of the Board of Directors of the Company is convened on June 07, 2007 to con

Jun 8 2007	Allianz Capital & Management Services Ltd	Allianz Capital & Management Services Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, inter alia, to consider Annual Accounts for the year 2006-2007, and for recommending dividend if any, to Equity Shareholders of the Company.
Jun 8 2007	Asian CERC Information Technology Ltd	Asian CERC Information Technology Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 18, 2007, inter alia, to consider the following:1. Audited Financial Results for the Year ended March 31, 2007.2. Reappointment of Mr. Sudhanshu Varma, as Whole Time Director.3. Increase in remuneration of Mr. Sanjay V Padode, Managing Director.4. To Call Balance money from Warrant Holders.Asian CERC Information Technology Ltd has informed BSE that the Board of Directors of the Company at its meeting held on May 18, 2007, has been adjourned sine die without transacting any agenda item.(As Per Board Decision BSE Bulletin Dated on 18/05/2007)Asian CERC Information Technology Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, to consider and transact the agenda items of the meeting of Board of Directors held on May 18, 2007 which was adjourned without transacting any item.(As Per BSE Announcement Website
Jun 8 2007	BPL Ltd	Audited Results
Jun 8 2007	Cravatex Ltd	Cravatex Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 8, 2007, inter alia, to approve the Audited Annual Accounts of the Company for the year ended March 31, 2007 and to consider recommendation of dividend, if any.
Jun 8 2007	Dynamatic Technologies Ltd	Dynamatic Technologies Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, to consider payment of Interim Dividend for the year 2006-07.
Jun 8 2007	Ponni Sugars (Erode) Ltd	Ponni Sugars Erode Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, inter alia, to transact the following:1. Consider and approve the Audited Annual Accounts for the financial year 2006-07; and2. Consider declaration or passing over of dividend for the financial year 2006-07.
Jun 8 2007	Shiva Cement Ltd	It has been decided to convene next Board Meeting on June 08, 2007, inter alia, to consider the following:a. To consider allotment of upto 23.0 mill. no. of Equity Shares upon conversion of existing Equity Share Warrants.b. To consider & approve Annual Accounts for the year 2006-07 and Director's Report thereon.c. To consider allotment of 14.5 mill. no. of Equity shares to ACC and 25.7 mill. no. of Equity share Warrants to ACC and others on preferential basis.d. To consider allotment of Equity Shares to IFCI Ltd on preferential basis as per their sanctions to the Company.
Jun 8 2007	Sinclairs Hotels Ltd	Audited Results
Jun 8 2007	Trishakti Electronics & Industries Ltd	Trishakti Electronics & Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, to propose Extra Ordinary General Meeting for increase of Authorized Share Capital and fix the EGM date.
Jun 8 2007	Usha International Ltd	Usha International Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 08, 2007, to consider the proposed Scheme of amalgamation between the Company, Shriram Fuel Injection Industries Ltd and The Jay Engineering Works Ltd.
Jun 8 2007	Yuken India Ltd	Audited Results

Jun 9 2007	Cinemax India Ltd	Cinemax India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to transact the following:1. To approve the quarterly results for the quarter ended March 31, 2007 and Annual Audited results for the year ended March 31, 2007.2. To consider and recommend dividend.
Jun 9 2007	Crew B.O.S. Products Ltd	Crew BOS Products Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to consider and approve the following:1. Audited results of the Company for the financial year ended on March 31, 2007.2. Recommendation of final dividend for the financial year 2006-07.
Jun 9 2007	Cybermate Infotek Ltd	Cybermate Infotek Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to discuss the following:1. Fix up the date for the Extra Ordinary General Meeting of the shareholders of the Company.2. Consider other proposals that mat be brought in by the members of the Board.
Jun 9 2007	Orient Abrasives Ltd	Orient Abrasives Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter aria, to consider the following:1. Recommendation of final dividend on the equity shares of the Company for the financial year ended March 31, 2007.2. Audited Financial Results for the year ended March 31, 2007.
Jun 9 2007	Seshasayee Paper & Boards Ltd	Seshasayee Paper & Boards Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to transact the following:1. Audited accounts for the financial year 2006-07.2. Recommendation of Dividend for the said financial year.
Jun 9 2007	Silktex Ltd	Silktex Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to consider the following:1. To take on record the Audited Financial Results for the year ended March 31, 2007.2. To consider the recommendation of dividend for the year 2006-07.
Jun 9 2007	Subuthi Finance Ltd	Subuthi Finance Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 09, 2007, inter alia, to consider the following:1. Audited Financial Results of the Company for the year ended March 31, 2007.2. Appointment of Mr. S V K Rajadurai as Director of the Company.3. Remuneration to Mr. A Raja Sukumar, Director of the Company.

Jun 10 2007

Yashraj Securities Ltd

Yashraj Securities Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 10, 2007, inter alia, to consider the following:1. Audited Financial Results of the Company for rhea year ended March 31, 2007.2. Recommendation of Dividend for the financial year ended March 31, 2007.3. Recommendation for issue of Bonus Shares for the financial year ended March 31, 2007.4. Shifting of Registered Office.5. Split of Shares.6. Change of Name & object of the Company.7. Finalisation of forth coming AGM Venue, Time and date.

Jun 11 2007	Hercules Hoists Ltd	Audited Results
Jun 11 2007	James Hotels Ltd	James Hotels Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 11, 2007, inter alia, to consider and take on record the Company's Audited Financial Results for the financial year ended March 31, 2007 and to consider and approve the allotment of preferential issue of equity shares and / or share warrants convertible into equity shares.
Jun 11 2007	Motor & General Finance Ltd	Quarterly Results
Jun 11 2007	Riddhi Siddhi Gluco Biols Ltd	Riddhi Siddhi Gluco Biols Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 11, 2007, for transacting the following business:1. To approve Audited Accounts for the year ended March 31, 2007.2. To declare dividend.
Jun 11 2007	Veejay Lakshmi Engineering Works Ltd	Veejay Lakshmi Engineering Works Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 11, 2007, inter alia, to consider the Audited financial results for the year ended March 31, 2007 and to consider the proposal of recommendation of dividend, if any.

Jun 12 2007	Berger Paints (India) Ltd	Berger Paints India Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 12, 2007, inter alia, to consider, the Company's Audited Financial Results for the year ended March 31, 2007 & also consider recommendation of Final Dividend for the year ended March 31, 2007.
Jun 12 2007	Deccan Cements Ltd	Audited Results
Jun 12 2007	Rajesh Exports Ltd	Rajesh Exports Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 12, 2007, to discuss about developing the Company's land bank. The Board will specifically discuss about starting the development of the selected five properties out of the total of thirty two properties owned by the Company, which are currently worth approximately about Rs 800 crores.
Jun 12 2007	VBC Industries Ltd	VBC Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on June 12, 2007, inter alia, to consider the re-appointment of the Managing Director, Shri. V S Rao.

Emkay - Monthly Recommendations - June 2007

Emkay - Monthly Recommendations - June 2007

Anand Rathi - Weekly Technical Note, Weekly Strategist, Weekly Wrap

Weekly Technical Note

Weekly Strategist

Weekly Wrap

Dice loaded in favour of the bulls

The markets opened with a bang and closed the session with somewhat of a whimper as profit taking at higher levels eroded early gains. As I have been advocating, a clear and convincing close above the 4300 level on the Nifty spot is likely to be a definite trigger for the bulls to hitch their wagons to the market upmove. Till that happens, upsides are likely to be sporadic and weak.

The market breadth was positive as the BSE & NSE combined advance decline ratio on a BSE & NSE combined basis stood at 1982 : 1639 and the capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 9317 cr : Rs 5064 cr.

The indices have closed above the previous day’s close and significantly lower than the intraday perches. My investors will recall my hypothesis of a few days ago advocating bullishness in the markets based on the ratio of the average traded price vis-a-vis the last traded price of the Nifty near month futures.

The same pattern has occurred on the 60 minute charts and I feel the coming session should be a positive one - barring unforeseen circumstances.

The coming session will witness an intraday range of 4320 on advances 4274 on declines. A breakout in either direction will determine the absolute short term direction. Keltner studies point towards the dice of possibility loaded in favour of the bulls.

The coming session should witness a positive bias as long as the overseas market remains firm and the long positions initiated via the bull call spread are in the money and may be held for now. Contrarian players should curb the urge to go short for now.

Vijay Bhambwani

Way2Wealth - Carbon Credits - The Emerging Goldmine

Way2Wealth - Carbon Credits - The Emerging Goldmine

MoneyTimes

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Rakesh Jhunjunwala - Valuations don`t look stretched

Via Business Standard Rakesh Jhunjhunwala of RARE Enterprises, a high-profile investor, talks to Rajesh Bhayani on the state of the secondary market and the hype around IPOs.

What is the market outlook at current levels? The economy is growing at a good pace. GDP growth is at 19 year high despite government taking hard measures to curb inflation. And remember, hardly 1 per cent of our population invest in equities. As the investing population rises, more money will flow into the market.

What about the risks of a strong rupee and rising crude price? A rising rupee may put pressure on IT margins, but rising volumes will offset negatives. Crude oil prices were high last year also but the dollar was 45 then, which is 40.5 today... consider that also. The world has managed to absorb high crude oil prices.

Aren't valuations looking stretched? Who decides the valuations and who can say which level is reasonable? I think, if stocks are giving better returns compared with competitive investment avenues then why I should withdraw my investment from equity. Yes, earnings may moderate from their higher levels.

So you don't see a big correction happening? I am not worried about corrections. We have seen the market growing from 3000 points to 14500 points in the last four years. Certainly, Sensex will not be 60000 by 2010. It cannot. I think these type of doubts [that valuations are stretched] are in mind and they not in reality.

But there are risk factors... The India story is irreversible. Whatever the risks, they can at most cause delays. I think nothing can change India's growth prospects. If the market has managed to rise from 3000 to 14500, what is wrong if it remains in the range of 12000 to 15000 for a year?

What about other investment avenues such as commodities and real estate? Is real estate turning into a bubble? If one wants to invest in commodities he can invest in commodity shares. I don't see a bubble in real estate. Again, who decides what is reasonable and what high level is? But, real estate prices may see some correction.

How is the IPO mart shaping up? Money is there in the market. Mega issues will also get absorbed. But if you look at issues listed in the near past, most of them are trading at a discount to their issue price. This may result in a reasonable pricing of IPOs.

IDBI Capital - Indian Bank, Jai Balaji Sponge, NIIT Technologies, Pitti Laminations, Zenotech Labs

Indian Bank

Jai Balaji Sponge

NIIT Technologies

Pitti Laminations

Zenotech Labs

Emkay - Deepak Fertilizers, SREI Infrastructure, Tata Chemicals

Emkay - Deepak Fertilizers, SREI Infrastructure, Tata Chemicals

Analysts’ picks

HPCL
CMP: Rs 295.75
Target price: Rs 375

Kotak Securities has maintained its 'outperform' rating on HPCL with a price target of Rs 375, saying the strong financial performance in FY07 is likely to set the stage for a better performance this financial year.
"We currently assume that the government will follow the same system for distribution of underrecoveries as it has done in FY07," the Kotak note to clients said. The brokerage feels the stock is attractively valued at 6.5% dividend yield and a price earnings ratio of 5.3 times estimated FY08 earnings. "However, we will have to wait for more clarity on vital issues of oil bonds and share of upstream companies; these variables can swing earnings of R&M companies dramatically," the note added.

IOC
CMP: Rs 465.25
target price: Rs 450

UBS has retained its 'reduce 2' rating on IOC with a price target of Rs 450, saying the operating profit for FY07 was boosted by oil bonds. "With under-recoveries continuing unabated, IOC's finances depend on ad-hoc oil bond issuance and a contribution from upstream companies," the UBS note to clients said. "In the event of a fall in crude prices or rupee appreciation, we think the benefit is unlikely to be passed on to downstream companies in the medium term as the oil bonds amount might be reduced," the note added.


Gokaldas Exports
CMP: Rs 219.65
target price: Rs 260

Motilal Oswal has retained its buy rating on textile major Gokaldas Exports but lowered price target to Rs 260 and also slashed earnings estimates. "Management has indicated that they have a robust order book for 1QFY08 (April-June) of around Rs 250 crore and expects revenues to grow at 15% for next few years," the Motilal Oswal note to clients said. "Despite limited risks, the sharp appreciation in the rupee will impact earnings. We are lowering our PAT estimates for Gokaldas for FY08 and FY09 by 18.7% to Rs 74.7 crore and 18.3% to Rs 88 crore, respectively, to reflect the negative impact from the appreciating rupee," the note added

Nagarjuna Const
CMP: rs 171.30
Target price: Rs 174

Macquarie Securities has maintained its 'neutral' rating on Nagarjuna Construction with a price target of Rs 174, saying the impending equity dilution could affect earnings growth in its core business. "Upside from investments in recently awarded BOT and real estate projects is uncertain, given the lack of clarity on demand and pricing," the Macquarie note to clients said. "Plans for the recently awarded Machilipatnam port project could undergo changes with possible relocation of project site. We would like to wait for more clarity on demand and pricing before imputing a positive net present value to the project," the note added.


Unitech
CMP: Rs 568.50
Target price: Rs 430

Citigroup Global Markets has retained its sell rating on Unitech saying the current stock price already reflects potential upsides. "As per industry, the transaction activity has slowed significantly - volumes sold over a quarter last year are now sold over 9-10 months; property prices are stagnating given affordability issues, while some pockets in North have seen declines; and project delays are on the rise," the Citigroup note to clients said.

"While bonus will improve liquidity and Unitech's scale, and we think low-risk-high return model deserves 10% premium, with stock already trading at 50% premium to our NAV of Rs 391/share, upside looks priced in and valuations do not leave any margin for error from potential execution delays," the note added.

How Deccan boards Kingfisher biz class

Economic Times

It was in early May that Vijay Mallya decided to change the course of Indian aviation. He called Captain Gopinath, the founder and chairman of Air Deccan, and tried to make him an offer difficult to refuse.

Air Deccan’s back was on the wall: it had only a month’s cash left; it had defaulted on payments worth over Rs 200 crore to various partners like simulator providers, spare engines suppliers and maintenance firms. Time was running out, but not the Captain’s tenacity.

He refused the deal and said, “I am from Mars and he is from Venus.” He then shot off an e-mail to all Deccan employees requesting them to dismiss all speculation about any merger or alliance with Kingfisher. All of a sudden, the deal seemed to be over. There were gloomy faces at Vijay Mallya’s headquarters. At Deccan, the situation was desperate.

The company needed a partner quickly, raise some money so it could continue to fly. The offers from the Anil Dhirubhai Ambani Group (ADAG) and Texas Pacific Group (TPG) had their own share of problems. ADAG wanted majority control of 51%. Captain Gopinath rejected the idea outright: he simply didn’t want to give up control.

Also, he didn’t want to get swallowed in the ADAG apparatus where Deccan would be just another investment. TPG would bring in the money but offered no real synergies which Mallya’s Kingfisher provided. There were a few other private equity players in the fray as well.

“But picking up a stake in Air Deccan would have forced us to do an open offer. This would have increased the size of the deal and we were not ready for it,” said a senior executive from an airline who did not wish to be quoted. As the deal size got bigger, these financial investors fell off their bikes.

Edelweiss Capital, Deccan’s advisors then swung into action. The firm had done some work for Kingfisher in the past, and had some idea about its operations. A rapport also existed between senior Edelweiss and Kingfisher executives. Using their goodwill with the Mallya camp, they persuaded Mallya to adopt a different tack.

They pointed out the synergies between Deccan and Kingfisher and the benefits of consolidation in a industry reeling under severe cost and margin pressures. Mallya, meanwhile, was also thinking along similar lines. He realised that his first approach was too strong and had put Gopinath on the defensive. It had made Kingfisher look like a predator. The public statements about his interest in Deccan had only elicited a sarcastic response from Gopinath.

Another factor was also weighing on Mallya’s minds. If he failed, Deccan will have no option but to do a deal with any of the other investors. ADAG, with its money and muscle, would be a formidable competitor. Backed by the younger Ambani’s almost limitless fund-raising abilities, Deccan could continue playing the price warrior.

Dirt cheap tickets would be dumped in the market, further worsening the financial position of all airlines. Mallya decided to turn on the humility tap and let the charm flow. As he hopped across London, Glasgow, Monte Carlo and Paris, he resumed conversation with Gopinath. With the help of some advisors, Mallya worked on Gopinath.

He dropped all talk of acquisition, takeover or merger. He adopted the line of a friendly investor. He also refrained from public statements that would irk Gopinath or other investors. His team, meanwhile, was preparing the ground along with Edelweiss. They pitched the deal as an investment by UB Holdings, not Kingfisher Airlines.

This was crucial in order to persuade Gopinath that a more flamboyant rival is not taking over his company. It was a different Mallya who phoned Gopinath early last week. “Would you consider it if I come in as an investor?” he asked. “May be we can come in with minority stake and then raise our holding through an open offer,” he told the Captain.

As Gopinath began to understand Mallya’s proposition, the king of good times made his killer move. “You continue as the chairman. This is probably the first time in my life that I am sitting as a vice-chairman in any company I have been involved with,” Mallya is said to have told the Captain.

Gopinath liked the idea. The alternative, ADAG, was simply not acceptable to him. But there was something he needed to resolve. Air Deccan’s original backers, including Lachmandas Ladhani, who were believed to have opposed plans to sell stake to the UB group. Mr Ladhani, one of the original investors in Air Deccan, has a 11% holding in the company. He managed to carry the day taking with him Mr Ladhani as well as the financial investors, ICICI Ventures and Capital Partners.

While Mr Mallya may have been persuasive, there’s another man who wanted Captain to do the deal: Kiran Rao, the executive VP of Airbus. Considering that Air Deccan has placed an order for 62 A320 aircraft amounting to $2.4 billion, Airbus reportedly was concerned about the pre-delivery advance payments from the cash-strapped Air Deccan.

So, a meeting reportedly took place in Europe early this week between Mallya and Airbus officials. The final decision was taken in consultation with Airbus officials. With everything going for the deal, Captain Gopinath decided to give up the spartan efficiency of Air Deccan to board the Kingfisher business class. While the Air Deccan brand remains, and the two companies will operate “independently”, it is clear that the days of price warriors are over.

At the press conference to announce the deal in Mumbai on Friday, it was clear who the dominant partner was. The venue was flooded with Kingfisher colours of red and white, and the Kingfisher girls had been thrown in for more colour. With the exception of the airline’s CEO and CFO on the dais, Air Deccan was hardly in evidence.

Religare - Cinemax, Mahindra & Mahindra

Religare - Cinemax, Mahindra & Mahindra

Omax Auto, IVRCL, VSNL, HPCL, India Strategy,Crompton Greaves

Man Financial on IVRCL

IVRCL's Q4FY07 numbers are much above our expectations with sales growth at 67.5% against expectations of 40.2% growth and margins increased to 10.6% as against expectations of 9.5%. With a healthy outlook for the core business and value creation from its real estate ventures, four special purpose vehicles (SPVs), and a strong performing subsidiary, Hindustan Dorr Oliver (HDO), we increase our target price to Rs 448 and maintain BUY.

Man Financial - Crompton Greaves

We expect consolidated eps of Rs 10.2 and Rs 12.5 (excluding upsides from Ganz and newly acquired Microsol) in FY08E and FY09E respectively. CG trades at a PER of of 23x FY08E and EV/EBITDA of 13x FY08E. We currently have a Outperformer rating on the stock. The rating is under review.


Man Financial on HPCL

* HPCL's quarterly results were above estimates as there was marketing over-recovery for Q4FY07 due to higher-than-expected subsidy-sharing by upstream companies.
* Although the refining margins recovered in this quarter, they were slightly disappointing as they lagged industry trends.
* We maintain our Neutral rating with a price target of Rs 315

JP Morgan on VSNL

Valuations and stock view. We maintain neutral rating on VSNL stock with Jun-08 SOP price target of Rs500 (Rs475 previously). Our SOP includes Rs235 from the India business, which we have valued using DCF (implied FY08E EV/EBITDA is 6.0x). Stock is likely to remain in a trading range and we would consider buying around Rs400/share level.

Risks to our view. Downside risks are competition, adverse regulatory changes (regulation of access to cable landing stations) and delay in cash breakeven of TGN. Upside may come from unlocking of surplus land value. Furthermore, listing of RCOM's cable assets (FLAG) could also boost investor outlook on the value of TGN submarine cable system.

JP Morgan on India Strategy

Earnings expectations lowered. Over May, consensus earnings estimates for FY08E & FY09E were revised down by 1.2% and 1.6% respectively. The trend in terms of breadth also remained weak - 29 out of 67 stocks in the MSCI India saw upward revisions, while earnings for 36 stocks were revised down for FY08.
· Consumer, healthcare and financials lead downward revisions. Earnings estimates for the metals, industrials and energy sectors were revised up, while for consumers, healthcare and financial sectors were reduced.
· Earnings expectations and index performance. An analysis of changes in historic and forward EPS expectations vs stock prices indicates significantly higher correlation in the case of materials, financials and consumer discretionary and relatively weaker relationship in the case of IT services, healthcare, telecoms and industrials.
· Key consensus earnings and recommendation changes. Among the stocks mentioned, we have Overweight rating on Jet Airways and Underweight on Bajaj Hindusthan and Arvind Mills

SSKI on Omax Auto

Omax's Q4FY07 revenue and profits have been in line with our expectations, though operating margins were below our expectations. Q4FY07 net sales growth was strong at 27.6%yoy (Rs1.81bn), though operating margins were lower by 130bps qoq (higher 90bps yoy) at 9.1%. Operating profit grew by 42.6%yoy to Rs163m and net profit grew by 10.3%yoy to Rs54.6m, impacted by higher depreciation and interest charges.
The company has trimmed its export target for FY08 to ~Rs400-Rs500m against its earlier target of Rs500-Rs600m. The company's margins which had improved in the first nine months of FY07 due to the company's cost saving initiatives have surprised us negatively in Q4FY07 with an increase in overheads and conversion costs. Further, Omax Auto is not likely to derive any significant cost benefit in its steel procurement from Omax steel as the company's steel production and rolling mill project has not scaled up as planned and the company is now also considering an option of divesting part of its stake in Omax Steel (76% at present). In view of these factors we have lowered our revenue estimates by 4.7% in FY08 and 3.1% in FY09 and also lowered our margin estimates by ~70bps for FY08 and ~30bps for FY09. This has led to a sharp downgrade of 15.8% in earnings for FY08 and 5.3% for FY09. Notwithstanding the sharp earnings downgrade in FY08, valuations at PER of 6.0x and EV/EBIDTA of 4.2x FY09 estimates appear attractive. Maintain Outperformer with revised price target of Rs122 based on PER of 8.0x FY09.

Rakesh Jhunjhunwala Portfolio:March 2007

No.	Company name	% stake
1	Agro Tech Foods	4.3
2	Aptech	2.0
3	Bharat EarthMove	1.5
4	Bhushan Steel	2.4
5	Bilcare	11.6
6	CRISIL	7.6
7	Geojit Fin. Ser.	8.6
8	Geometric Soft.	3.5
9	Hind.Oil Explor.	3.9
10	Infomedia India	5.4
11	Lupin	3.5
12	Mid-Day Multimed	4.5
13	Nag. Constructn.	6.6
14	Pantaloon Retail	1.7
15	Praj Inds.	10.7
16	Prime Focus	6.9
17	Provogue (India)	2.5
18	Punj Lloyd	1.9
19	Ramco Systems	1.0
20	Titan Inds.	6.7
21	TTK Prestige	1.1
22	Vadilal Inds.	2.9
23	Viceroy Hotels	13.1

Nitin Fire Protection Industries Ltd. IPO Allotment

See here