Indiabulls, IPCA, JSPL, Jaiprakash Power Ventures

 Indiabulls, IPCA, JSPL, Jaiprakash Power Ventures 

Indiabulls

Indiabulls

Hindalco, Sterlite Industries, Dabur, HDFC, Union Bank, Indiabulls

Hindalco, Sterlite Industries, Dabur, HDFC, Union Bank, Indiabulls

Today's Pick - Indiabulls Financial

We recommend a sell in Indiabulls Financial Services from a short-term perspective. It is evident from the chart of this stock that it has been on a long-term up trend since its July 2006 trough of Rs 90. However, it began to decline after marking its life-high of Rs 1,028 in December 2007. Since then the stock has been on medium-term downtrend. We observe that the down days of the stock’s medium-term downtrend have been supported by good volumes. In late January the stock penetrated the 50-day moving average and recently it broke below the 200-day moving average too. The stock is currently testing the long-term up trendline at around Rs 600 levels. The daily momentum indicator is featuring in the bearish zone. The daily moving average convergence divergence is steadily declining in the negative region. We are bearish on the stock in the short-term. We expect the stock to break through the long-term up trendline and decline further to touch our target price of Rs 510 in the short-term. Investors with a short-term perspective can sell or book profit in the stock with stop loss at Rs 680.

Via Businessline

Bharti Airtel, Indiabulls, Bank of India, HDFC Bank

Bharti Airtel
Research: HSBC
Rating: Buy
CMP: Rs 915

Bharti Airtel is one of HSBC’s preferred picks in the telecom sector because it believes the stock offers low risk exposure to the domestic wireless sector at attractive valuations. Bharti Airtel, with low operating and financial leverage, offers the best earnings visibility vis-à-vis other domestic telecom companies and trades at FY09E P/E of 18.6x.

The current estimates for Bharti Airtel factor in the potential combination of high subscriber growth, low subscriber quality and high capital expenditure (capex). Unlike its peers, for whom EBITDA is likely to be subdued given the new rollouts, Bharti Airtel will continue to benefit from scale through its rising subscriber base.

The creation of Indus (tower JV) is a significant catalyst as it allows Bharti Airtel to benefit from lower capex and deeper coverage, while offsetting spectrum constraints and monetising its tower assets. HSBC remains bullish on Bharti Airtel’s earnings outlook and forecasts a 25.3% compound annual growth rate (CAGR) in earnings per share (EPS) for FY08-10E. This view is based on robust subscriber growth, recent initiatives to stimulate usage and stable EBITDA margins.

Indiabulls Fin Services
Research: Motilal Oswal
Rating: Buy
CMP: Rs 779

Motial Oswal reiterates its ‘buy’ rating on Indiabulls Financial Services with a revised target price of Rs 1,086. In its first quarter post-demerger, Indiabulls reported 270% y-o-y and 57% q-o-q growth in loan book to Rs 8,800 crore in Q3 FY08. Disbursements, at Rs 3,300 crore, were the highest ever in any quarter. Though yields declined to 21% due to an increase in secured loans, earnings grew 80% y-o-y. Post the impressive Q3 FY08 numbers, Motilal Oswal is raising its estimates on disbursements and loan book for FY09 and FY10. Indiabulls may disburse loans worth Rs 10,500 crore in FY08, which will increase to Rs 26,000 crore in FY10.

This will result in 143% CAGR in loan book over FY07-10E. But by factoring in lower yields, Motilal Oswal expects the strong growth in loan book and higher fees from processing and insurance distribution to drive earnings growth. Operating efficiencies will also support earnings, which are expected to see CAGR of 81% over FY07-10E.

The company has applied for a licence for its life insurance business, which is likely to be launched in Q1 FY09. Despite being a late entrant in this segment, its large customer base and wide distribution network will ensure fast growth. Motilal Oswal values Indiabulls at 3x FY10E book value (17x P/E) and the insurance venture at Rs 100 per share (at 49% stake).

Bank of India
Research: Morgan Stanley
Rating: Overweight
CMP: Rs 395

Morgan Stanley reiterates ‘overweight’ rating on Bank of India (BoI) with a target price of Rs 525. BoI reported Q3 FY08 earnings of Rs 510 crore, up 101% y-o-y and 20% on a sequential basis — higher than the expectation of 69% y-o-y growth. The bank’s core operating profit grew 74% y-o-y on sequential improvement in margins, robust fee income growth and control on operating expenses. In fact, the bank overprovided costs during the quarter — it has proactively provided for wage arrears for FY08 on an estimated basis. Asset quality strength persisted, with BoI’s coverage ratio improving to 78% in Q3. Productivity is improving across all areas — the bank opened 101 branches last year, without adding a single employee. Core earnings were strong. BoI’s continuation of strong core earnings momentum is also impressive. This is the sixth consecutive quarter the bank has reported earnings growth of over 50% y-o-y. Even core earnings growth has averaged 40% y-o-y during this period. The stock is trading at 10x FY09E earnings, 2x book with an RoE of 21%, which is very attractive.

HDFC Bank
Research: Edelweiss
Rating: Buy
CMP: Rs 1,601

Edelweiss maintains ‘buy’ rating on HDFC Bank. The bank’s Q3 FY08 profit was up 45% y-o-y, ahead of consensus estimates. Net interest income (NII) grew 55% y-o-y to Rs 1,430 crore. The bank’s business momentum increased on strong contribution from SME and corporate segments. Provisions rose q-o-q with higher specific provisioning. The bank booked one-off gains of Rs 100 crore on sale of its stake in CAMS during the quarter. It also made one-off provisions on indirect taxes of Rs 73 crore. Adjusting for these extraordinary incomes, net profit grew 36% y-o-y. Pre-provisioning operating profit grew 30% y-o-y to Rs 930 crore. Key highlights of the quarter were: (1) Net interest margins improved q-o-q to 4.3%, with decline in cost of funds and increase in yields on investment; (2) Core fee income grew 38% y-o-y; (3) The proportion of low-cost deposit declined slightly to 51%; (4) Operating expenses increased 78% y-o-y due to higher other operating expenses; (5) Overall provisioning increased 59%; and (6) Balance sheet grew 47% y-o-y. Edelweiss is revising its earnings estimates upwards for FY08E and FY09E by 2% and 6%, respectively, and expects the bank to post EPS of Rs 45 for FY08E and Rs 59.6 for FY09E, respectively. The stock is trading at 3.6x FY09E book and 24x FY09 earnings.

Indiabulls gets clean chit

Capital market regulator Sebi on 5 December absolved Indiabulls Securities of charges of cornering shares meant for retail investors in IPOs and dropped an inquiry initiated against the brokerage firm.
“The present adjudication proceedings against the noticee (Indiabulls Securities Ltd) is disposed of,” Sebi adjudicating officer S Biju said.
Although the regulator had last year banned Indiabulls from carrying out trades in the market after a scam was unearthed in IPOs launched between 2003-05, the order was kept in abeyance till completion of the inquiry after the brokerage firm challenged the decision.
Sebi conducted investigation into the dealing of Indiabulls in the IPOs of 21 companies including those of Amar Remedies, Datamatics Technologies, Dishman Pharma and Chemicals, Gokaldas Export, ILFS Investmart, Indraprasth Gas, Infrastructure Development Finance, Jet Airways and NTPC.
Other companies, whose public issues were investigated included Patni Computer, Suzlon Energy, TV Today Network, TCS and Yes Bank, the regulator said in a statement.
Sebi had observed that the some entitites had cornered shares of these companies by making fictitious applications in the category reserved for retail investors.
Sebi said the after the inquiry it found that Indiabulls did violate the Sebi Act or its regulations on prohibition of fraudulent and unfair trade practices relating to securities market.
Sebi said it had noted that in the IPO of Tata Consultancy Services Ltd, 13,939 shares were received from 559 accounts to the Indiabulls’ account.
Later, on the advice of Sebi, National Securities Depository Ltd (NSDL) conducted an inspection of all these accounts, but nothing was found wrong, as the demat accounts were genuine, said Sebi.
An inspection was also carried out by a team of officials of Sebi, BSE and NSE, of the 559 clients who had transferred TCS shares to the Indiabulls. Of these, 459 clients held demat accounts with it and the remaining clients held beneficiary accounts with other depository participants.

Siemens, Indiabulls Financial, Nestle India, Two Wheelers,Kotak Mahindra Bank

Siemens, Indiabulls Financial, Nestle India, Two Wheelers,Kotak Mahindra Bank

Hindalco, Indiabulls

Hindalco, Indiabulls

Britannia, Godrej, Glaxo, Indiabulls, Suzlon, Zee

Britannia, Godrej, Glaxo, Indiabulls, Suzlon, Zee

Indiabulls - Tech Mahindra

Indiabulls - Tech Mahindra

SEBI ostracises 15 brokers for deals 'not done'

India's stock market regulator on Tuesday said it had found synchronised deals by brokers in the derivatives segment on the National Stock Exchange's which were false and misleading.

Following the revelation of some "non-genuine" transactions, the regulator has asked 15 brokers and 10 other entities not to indulge in distortion of the derivatives market.

"The entities/brokers have indulged in non-genuine transactions to create false and misleading appearance of trading," SEBI said in an order.

Indiabulls Securities Ltd., Khandwala Int. Fin. Ser. Pvt. Ltd. and Angel Capital & Debt Market Ltd. were among the fifteen brokers named in the order. SEBI said it had analysed transactions for the period between January to March 2007.

Merrill Lynch - UTI Bank, Indiabulls Fin, Matrix Labs, Infotech Enterprises

Merrill Lynch - Infotech Enterprises

Merrill Lynch - Indiabulls Financial

Merrill Lynch - Matrix Labs

Merrill Lynch - UTI Bank

Citigroup - Indiabulls

Citigroup puts a sell on Indiabulls.. Target 32% lower!

Citigroup - Indiabulls

Citigroup - India Economics & Indiabulls

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Indiabulls - Sun Pharma

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Indiabulls Real Estate

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Indiabulls - Geodesic, ITC, Sesa Goa

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Evinix Accessories Ltd

Background

• Evinix Accessories Ltd. (EAL) was incorporated in the year 1996 as Evinix Fashion Accessories Private Ltd. Name of the company was changed to Evinix Accessories Private Ltd. in the year 2003. It became a public limited company on 3rd February 2006.
• EAL is in manufacturing and designing of fashion accessories and garments. It is also engaged in trading of fabrics.
• The company’s current manufacturing facility is located in Faridabad district of Haryana. This facility has an installed capacity to manufacture 20lakh fashion accessories/garments per year. Current plant capacity utilization is 80%.
• EAL is serving both in domestic and foreign markets.
• Upon completion of the issue, promoter’s holding will get reduced to 29.91%of the post issue equity share capital from current 44.44%.

Object of issue

• Acquisition of a garment-manufacturing unit.
• Expansion at the acquired NSEZ, Noida unit and at Faridabad unit.
• Setting up retail business activities.
• Long-term working capital requirement.

Valuation

• In a span of last four years (2002-2006), the total sales have grown at a CAGR of 24.72% while its net profit increased at CAGR of 69.39%.
• Earning Before Depreciation, Interest and Tax (EBDIT) for the fiscal year 2006 was Rs. 805.44 Lakh, which increased by 81% in comparison to the last fiscal, which was Rs. 446 Lakh.
• EPS for FY06 is Rs.8.7. Post issue EPS is Rs.5.87. Post issue P/E will be in the range from 4.89-5.87 for the price band of Rs.100/- to Rs.120/-

Indiabulls IM tips

As said markets remained volatile on the day of expiry, due to which a DOJI pattern has been made indicating uncertainity and directionlessness, which could lead to further consolidation in the markets in the days to come. Expect an upthrust above 4008 levels to create new highs, failing which consolidation cannot be ruled out

Investors & Day Traders : Jackpot for the new year 2007 !!! Grab Speciality Papers Limited at 09:55 am and earn millions in coming days. After going through the speciality of Speciality Papers you will say real gem at current levels ⦠Yes very cheap valuations + Fantastic results + Major breaking news to be out anytime will take the stock from the current price of Rs. 45 to Rs. 58. Crossover and close above this will take stock to Rs. 72 and Rs. 90 in coming days. Gift for the year 2007. Just buy 10,000 to 25,000 shares at the opening bell & forget. You will be rewarded heavily

HERO HONDA : Last close 759.15 Wise people very much behind this counter. Still not acheived its upper target. Huge accumulation in this stock is over since last two days and the stock is ready for a long jump anytime. Currently the MACD is bullish since it is trading above its signal line. Remain invested keeping stop loss of Rs.748. Upper sideâ¦.Non stop rally will take this to Rs.771...maybe today itself, Cross over will take this to Rs.784 mark.

BOM DYEING : Last close 715.50 Highly bullish in short-term, and bullish in mid-long term. Ready to explode any moment. Best stock for short term tradersâ¦Buy keeping stop loss of Rs.705 for an upper target of Rs.740 were minor selling not ruled out, Cross over will take this to Rs.769.

TATA TEA : Last close728.50 Worst seems to be over now. Divergence: The security price has set a new 14-day low while the RSI has not. This is a bullish divergence. Buy at the opening bell keeping stop loss of Rs.717. Upper sideâ¦Expect it to zoom toRs.746, Cross over will take this to Rs.760.

BANK OF INDIA : Last close 205.35 Buy on decline keeping stop loss of Rs.200 for an upper target of Rs.211, Cross over will take this to Rs.218 mark

BANK OF BARODA : Last close 244.60 Buy in panic keeping strict stop loss of Rs.240. Upper sideâ¦Expect it to zoom to Rs.249, Cross over will take this to Rs.255 mark.

JINDAL STEEL : Last close2222.60 This stock is going to explode today itself. Stock will zoom to Rs.2248 and Rs.2275. Best stock for day traders. Buy at the opening bell keeping stop loss of Rs.2188.

VOLTAMP @ 686 BUY IT`S SMALL QUANTITY KEEPING A STRICT STOP LOSS OF Rs. 674.50 FOR A TARGET OF Rs.700 AND 706. IT CAN BECOME EVEN ROCKET OF THE DAY.............

Investors chase Indiabulls Financial

Indiabulls Financial Services surged 5% to Rs 673 on continued buying, a day ahead of the last trading date for shareholder eligibility to get the shares of the real estate firm.

The stock rose on high early volume of 18.2 lakh shares.

The stock had spurted 9.4% to Rs 590.30 on 21 December on high volume of 56.9 lakh shares on BSE after the company announced 9 January 2007 as record date for its demerged real estate business, now brought under Indiabulls Real Estate (IREL). Continued buying in the stock took the scrip up further to Rs 640.75 by 27 December.

The stock enters no-delivery period on BSE from 2 January 2007 to 8 January 2007, for the purpose of the demerger of the real estate business.

Earlier, the stock moved in the range of a low of Rs 500 and a high of Rs 582 since mid-November 2006. Last few months saw a solid surge in the scrip. From Rs 197.95 on 24 July, the stock surged to Rs 640.75 by 27 December.

International consultancy firm Knight Frank has estimated the value of Indiabulls' real estate projects, including the development potential, at Rs 21570 crore, of which IREL's stake is put at Rs 15130 crore. As per the scheme of restructuring, each shareholder of Indiabulls Financial Services will be entitled to one share in IREL.

Recently, Indiabulls Financial Services had acquired 100% equity of Noble Realtors, a company involved in construction and development of real estate projects.

Indiabulls Financial Services is transforming into a financial services power house. The company, earlier focussed on stock broking, has warmed up to consumer finance and realty businesses.

For Q2 September 2006, the company reported 59.20% rise in net profit to Rs 30.63 crore (Rs 19.24 crore). Revenue advanced 21% to Rs 65.87 crore (Rs 54.42 crore).