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Thursday, September 13, 2007
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Tanla Solutions CMP: Rs 482.65 Target price: Rs 706 HDFC Securities has initiated coverage on Tanla Solutions with a ‘buy’ recommendation on account of the company’s presence in the mobile transaction business. According to the brokerage, Tanla Solutions’ revenue is estimated to grow at a CAGR of 72% between FY07 and FY09. “Servicing content providers will help Tanla to catch up with the rapid technological changes in the content delivery business. This is a major business for Tanla and helps it to get more content providers on its network,” says the report. Moreover, the company is expected to spend Rs 220 million in FY08 on R&D. “We believe that the company would grow at a CAGR of 59% in FY07-09E at net levels. This gives us a target price of Rs 706 for the stock --Rs 646 for the core business and Rs 60 for its non-core business (interest and dividend incomes),” said the brokerage in a note to its client. Spice Comm CMP: Rs 55 Target price: Rs 70 Citigroup has initiated coverage on Spice Communications with a ‘buy’ recommendation as the telecom entity is in the process of ramping up coverage in Punjab and Karnataka. “Moreover, we believe its suitability as an M&A target provides the icing on the cake,” adds the report. Access to 900 MHz and its small footprint make it an attractive and probably the only M&A candidate, explains the foreign brokerage. “New spectrum rules may dilute M&A prospects a bit, but on the flip side provides a chance to enter new circles, though constrained by size and management bandwidth,” it adds. However, the report adds that while new circle rollouts are possible if new spectrum norms are accepted by the department of telecom (DoT), Spice will remain constrained by its balance sheet size as well as management bandwidth. Citigroup has set a 12-month price target at Rs 70 per share. Incidentally, the price target includes a 15% M&A premium. We believe that the scope for merger/acquisition between Spice and other telcos such as Idea, RCOM and Aircel still exists, says Citigroup. Mindtree Consulting CMP: Rs 582.75 Target price: Rs 556 Religare has initiated coverage on Mindtree Consulting with a ‘sell’ recommendation as it feels that operational risks are raising concerns and valuations are expensive. While Mindtree has been one of the fastest growing mid-tier Indian IT services company, growth has slowed down significantly in FY07 and is further expected to slow down in FY08 due to rupee appreciation, says the report. “Risks to growth is significant as more than 65% of the revenues come from development projects which are highly dependant on the discretionary IT spend of clients. In the event of an economic slowdown in the US, discretionary IT spends would be curtailed,” adds the report. However, the report adds that the estimates do not factor in any large deals that the company might win that could fuel higher-than-expected earnings growth. IOB CMP: Rs 138.15 Target price: Rs 150 Angel Broking has recommended a ‘buy’ on Indian Overseas Bank with a 12-month price target of Rs 150. “IOB remains in a ‘sweet spot’ with its superior return ratios, consistently high net interest margins, better operating efficiency and higher leverage. Going ahead, with the government’s holding at 61%, IOB would be an active candidate in the consolidation process in the PSU banking space,” says the report. Meanwhile, the brokerage has valued the bank at a 10% discount to fair value to factor in its geographical concentration. The report has also factored in positives like well-managed assets and liabilities to drive earnings, a significantly derisked investment book and strong operating performance. Further, IOB is well-placed on the capital adequacy ratio (CAR) front. “For FY07, the bank reported CAR of 13.27% of which Tier I comprised 8.2%. Post implementing Basel II, management expects CAR would stand at 12%. IOB has to comply with Basel II guidelines by FY08 due to its overseas branch network. We do not expect the bank to dilute its equity in the near term,” adds the report. |
Anand Rathi’s Technical Speak- Ispat Industries
Ispat Industries has breached its intermediate resistance at Rs 18 and continues to sustain above that level. The substantial increase in volume along with the price indicates that the bulls are clearly committed to the stock.
The stock has clearly entered into a fresh bullish trajectory after a prolonged accumulation. Buy this stock aggressively between Rs 18 –Rs 19.50. We expect the stock to reach a target of Rs 26-30 in the medium term. Keep a stop- loss of Rs 16.20, says Anand Rathi Securities in a report dated Sep 12.
At 12:14 pm on BSE, the Ispat Industries share was at Rs 19.20, up 3.5 per cent over Tuesday’s close. Total traded quantity was 94,36,728, against the two-week average of 1,27,70,261 shares. A week ago, the stock was at Rs 18.75 and month earlier Rs 13.89.
Properazzi, 99acres tieup
Indians and Indian companies looking to buy or rent property abroad will soon have a four-million-strong international listing of real estate options to choose from via 99acres.com, a property portal launched by Info Edge (India) Ltd which plans to team up with Properazzi.com, part of Properazzi European Group SL.
This strategic partnership will allow users of both these portals to access bothreal estate databases and listings for buying, selling and renting both commercial and residential properties.
99acres, which was launced in 2005, says it has some 1,500 builders, 20,000 brokers and 40,000 individuals listing on the site, with some 200,000 residential and commercial properties from around 100 cities for sale.
Properrazzi hosts some four million properties across 49 countries.
“In the past few months, we have received requests...for buying or renting property in places such as Dubai, the UK, particularly London, Malaysia, Singapore and even some parts of US. Besides, NRIs are also increasingly investing in property in Gurgaon, Bangalore, Kochi, Hyderabad, Pune and Chennai. This tie-up will help us leverage both these customers,” said Hitesh Oberoi, chief operating officer of Info Edge.
As for foreigners using Indian websites to buy properties, some analysts say that because the real estate market is fragmented and riddled with cumbersome paperwork, difficult norms and non-trasparency, the task could be challenging.
Still, “if portals, such as 99acres, are able to provide clarity to users on processes and paperwork, create awareness and transparency, it will only grow the market and allow users to increase their access in markets new to them,” said Abhishek Gupta, senior manager, research and strategic consulting, at real estate firm Jones Lang LaSalle Meghraj.
This international partnership is part of 99acres expansion strategy to be a one-stop property shop for its users. In the next three-four months, the company will expand to 25 cities from 11. It is looking at tying up with firms offering moving services, insurance and interior decoration services as well.
“99acres is currently growing at over 100% and we will continue with this growth in the future. In the next one year, we plan to invest $3-5 million on our expansion,” Oberoi said.
Revenues come in from the fees that the brokers and builders are charged for listing their property on the website. For individual users, the service is free unless they want value-added services such as alerts, which come for Rs 500 per listing. For brokers, it is Rs15,000 for 300 listings in a year, while for builders, the fees range from Rs15,000 up to Rs40 lakh.
Info Edge posted revenues of Rs147 crore through the year ended March, with the marriage portal Jeevansathi.com and 99acres.com together contributing around 7%
Wednesday, September 12, 2007
Power Grid Subscription Details
One day before it closes, here are the Power Grid subscription details
Qualified Institutional Buyers (QIBs) - 18.4192 times
Non Institutional Investors - 0.4895 times
Retail Individual Investors (RIIs) - 1.0748 times
Are you applying ? Leave a comment, vote in the poll above !
India fastest growing healthcare IT market in Asia
India has the fastest growing healthcare IT market in Asia, with an expected growth rate of 22 per cent, followed closely by China and Vietnam, says a report. The total market for IT in the healthcare industry in Asia was $2.95 billion (Rs 12,095 crore) in 2006, and is expected to grow at a compounded annual growth rate (CAGR) of 13.1 per cent to reach $4.83 billion (around Rs 19,803 crore) by 2010, says a Springboard Research report.
Surprisingly, Australia, probably the most developed market in the region and the second largest, is the fourth fastest growing market.
Many of the more developed Asian markets such as Hong Kong, Taiwan, Singapore, and Korea had a much lower percentage of healthcare IT spending than the emerging markets, but still managed to provide high quality healthcare services to their populace, the report said.
Jonathan Silber, research manager for Springboard Research, said, "While you can see a definite split in trends and spending patterns by the developed and developing countries, even within these groups there is further fragmentation that increases the challenge for IT vendors. For example, you have a mature country such as Australia that is a larger market, yet growing faster than many of the emerging markets due to trends unique to Australia. We are seeing more unique drivers across countries, so local strategies are even more important in Asia."
The Asian emerging markets continued to invest in infrastructure for their healthcare sector, with a broader push for community care and increased care in rural areas. Huge sums of money were being spent in India and China in this regard and, as mentioned above, many of the emerging markets in Asia were spending more on healthcare as a percentage of the total IT spending than the more developed countries, the report pointed out.
According to the report, in the more developed markets, the shift from clinical to patient-focused care is driving the technology needs of healthcare providers, who continue to invest in improving efficiencies and sharing information across providers. Other drivers in many of the developed countries include increased regulations, privacy restrictions in some countries, replacement of legacy infrastructure, as well as ageing populations.
Mid-caps rally
ndices gave up early gains and ended flat to negative Wednesday. Continuing with the pattern seen over the last couple of sessions, Indian equities opened higher tracking firm global markets, but were unable to hold gains as traders sold for profits.
“People are sceptical at higher levels, especially in index stocks, but buying interest still persists. Every day a different set of stocks take turns to hold indices at higher levels, showing a distribution pattern,” said Suresh Kumar Iyer, technical analyst at Asit C Mehta Investment
Interrmediates.
Today, indices were supported by Reliance Energy (up 3.24%), Bajaj Auto (2.55%), Reliance Industries (1.34%), HDFC (0.84%), Tata Steel (0.37%) and Mahindra & Mahindra (0.17%).
Bombay Stock Exchange's Sensex closed down 37 points or 0.24 per cent at 15,505.36, making a high of 15,661.44 and low of 15,486.81 during the day.
National Stock Exchange's Nifty finished flat at 4496.85. The index traded within the band of 4490.4 and 4531.5.
“Till the Nifty crosses 4551 decisively, we will continue to see sideways movement,” Iyer said.
Selling in NTPC, ITC, ICICI Bank, Cipla, Hindalco Industries, Ambuja Cements and Larsen & Toubro kept indices in check.
However, the broader market saw a smart rally. The BSE Mid-cap Index ended up 0.2 per cent at 6,889.55 and CNX Mid-cap Index gained 0.36 per cent to 6275.4.
Market breadth on BSE showed 1,541 advances and 1,157 declines, while on NSE, 613 shares advanced and 512 declined.
Realty stocks were buzzing on reports sector heavyweight Unitech will be added to the Nifty. The BSE Realty Index was up 1.47 per cent at 7,642.34.
Unitech closed 3.11 per cent higher at Rs 262.15, Parsvnath Developers gained 1.32 per cent to Rs 319.70, HDIL rose 1.72 per cent to Rs 572.25 and DLF was up 2.82 per cent at Rs 634.8.
Reliance Capital September 2007 futures most active
Sees high turnover of Rs 3,181.78 crore
The Nifty September 2007 futures settled at 4485.10, a discount of 11.05 points as compared to spot closing of 4,496.15.
The NSE’s F&O turnover was Rs 40563.67 crore as compared to Rs compared to Rs 41739.52 crore on Tuesday, 11 September 2007.
Reliance Capital September 2007 futures settled at premium, at 1327.90, compared to the spot closing of Rs 1325. It was the most active contract with turnover of Rs 3181.78 crore.
However Reliance Industries September 2007 futures settled at discount, at 2006.50, compared to the spot closing of Rs 2012.50.
SBI September 2007 futures settled at premium, at 1633.50, compared to the spot closing of Rs 1623.60.
In the cash market, the S&P CNX Nifty was down 0.80 points or 0.02% at 4,496.15.
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