Weekly Beeps 01-08-2010

Indian market seems to have hit a soft patch after a really good June,with the key indices struggling to break above the current range.Disappointing earnings from a few bellwethers have not been of any help even as uncertainty prevails over the state of the global economy. Even the fact that food inflation has dipped below 10% and that monsoon deficit has shrunk failed to offset jitters linked to corporate results. Bulls are hoping that August turns out to be better than July.

Data on manufacturing PMI from across the globe will be announced on Monday as we step into a new month. Over the next few days, key domestic data points of importance will be those on Trade, IIP and Monthly Inflation. The first day of August will also see Auto and Cement companies come out with their monthly volumes. Monsoon has been pretty good and the forecast is also positive. So, all eyes will be on inflation data not just for the month but also weekly.

Globally too, a slew of economic reports will be released next week.Of particular interest will be the monthly US jobs report apart from Chinese manufacturing PMI reports. Talking of economic reports, the US second-quarter GDP slowed to 2.4% from 3.7% in Q1. But, stocks on Wall Street and Europe recovered after encouraging reports on Chicago manufacturing and consumer sentiment. Monday's start will hinge on how these two markets finish on Friday.

Results will of course continue to pour in as the time to declare quarterly financial statements has been extended to 45 days.Any further disappointment on this front will keep a lid on stock gains.On the whole, we expect the market to remain in a range but with a positive bias. The NSE Nifty could cross 5500 shortly provided global markets are supportive. It may even rise beyond that but some pressure is bound to be there at higher levels. So, trade wisely and don't take.

BUZIBIZ

Value Pick for Long Term Delivery >> 01-08-2010 <<

1] Buy Apollo Tyres Ltd. - One year Return - 25%
Recommendation: BUY
CMP: Rs:64
Target Price: Rs:80  >> More >>

2] Buy Essel Propack - One Year Return - 40%
Recommendation: BUY
CMP: Rs:48
Target Price: Rs:70  >> More >>

3] Buy Orient Paper & Industries - One Year Return - 15%
Recommendation: BUY
CMP: Rs:54
Target Price: Rs:63 >> More >>

4] Buy Genus Power - One Year Return - 30%
Recommendation: Buy
Price Target: Rs:300
CMP: Rs:229 >> More >>

5] Buy 3i Infotech - One Year Return - 60%
Recommendation: Buy
Price target: Rs:100
Current market price: Rs:63 >> More >>

6] Buy Bank of Baroda - One Year Return - 25%
Recommendation: Buy
Price target: Rs:935
CMP: Rs:753 >> More >>

7] Buy IPCA Laboratories - One Year return 25%
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs:350
Current market price: Rs:280 >> More >>

8] Buy Provogue India Ltd - One Year Return - 50%
Recommendation: Buy
Price target: Rs:90
Current market price: Rs:58 >> More >>

Read more »

Value Pick for Long Term Delivery

Buy Apollo Tyres Ltd. - One year Return - 25%
Recommendation: BUY
CMP: Rs:64
Target Price: Rs:80

· EBIDTA/Profits above expectation due to sharp increase in inventory (7.2% of consolidated sales). Expect margins to decline QoQ despite price hikes

· VBBV reports strong results with margins of 16.5%. Expansion of capacity in FY12 due to strong demand in Europe. Higher rubber prices to affect margins from 3QFY11

· Lower FY11E conso EPS by 15.6% to Rs 7.2 due to lockout at Perambara plant. Assumed that plant will resume operation in 3QFY11. Marginally upgrade FY12 EPS by 2.5% to Rs 9.8

· Maintain BUY but lower target price to Rs 80 (down 9.1%), valuing at FY12E PER of 8.1 and EV/EBIDTA of 5.0. Lower target multiple as contribution from subsidiary to increase.

------BUZIBIZ------
Buy Essel Propack - One Year Return - 40%
Recommendation: BUY
CMP: Rs:48
Target Price: Rs:70

Essel Propack (EPL) reported satisfactory performance on like-to-like basis – revenue growth of 15.0% yoy to Rs3.3 bn and adjusted net profit of Rs104.0 mn

Blended volume growth of 12-13%, driven by 13% growth in laminated tubes, 30% in plastic tubes and 15% in packaging.

EBIT loss reduction in Europe (from Rs103.1 mn to Rs39.8 mn), but Americas continue to report muted performance.

Maintain positive bias with 'BUY' rating and price target of Rs70/Share

------BUZIBIZ------
Buy Orient Paper & Industries - One Year Return - 15%
Recommendation: BUY
CMP: Rs:54
Target Price: Rs:63

· Net profit at Rs0.34bn (+ 2.1% yoy) below estimates, on account of higher than estimated losses in paper division

· Revenues at Rs4.42bn grew by an impressive 27.6% yoy driven by 32% growth in cement segment (Rs2.84bn) and 32.3% in electricals segment (Rs1.35bn)

· Paper division reported a loss of Rs233mn (our est Rs111 mn) due to unprecedented shortage of water which led to shutdown at Amlai paper plant for the entire quarter

· Downgrading earnings by 14.3% for FY11 (EPS of Rs:8) and introducing FY12 estimates with a EPS of Rs10.3. Maintain BUY with price target of Rs:63

------BUZIBIZ------
Buy Genus Power - One Year Return - 30%
Recommendation: Buy
Price Target: Rs:300
CMP: Rs:229

Top line up 33.8%: Genus Power Infrastructures Ltd (GPIL)?s Q1FY2011 earnings topped our projections both on revenue and profitability fronts. The net revenue for the quarter was up 33.8% year on year (yoy) to Rs159.8 crore, much above our estimate of Rs145.8 crore. The
company?s meter?s business continued to post robust growth with revenue for the quarter at Rs72 crore. The projects business recorded revenue of Rs64 crore.

OPM robust at 16.9%: The operating profit margin (OPM) was stable?at 16.9% in the quarter as compared to 17.1% in the year ago quarter, as the rise in other expenses was offset by containment in raw material cost. The other expenses increased 59.4% yoy in the quarter mainly on account of increased provision of Rs5-6 crore (with respect to state electricity boards [SEBs] for any eventuality of liquidated damages).

PAT up 55.6%: The interest cost came down marginally, to Rs9.6 crore in the quarter. Robust margins led the profit after tax (PAT) up 55.6% yoy to Rs12.95 crore, as against our expectation of a 22.1% y-o-y growth.

Order book at Rs788 crore: The order book at the end of Q1FY2011 stands at Rs788 crore as against Rs820 crore at the end of Q4FY2010. The company got orders worth Rs129 crore during the quarter. The orders for meters division formed 34% of the current order book and
those for projects division formed 65%. The company has already participated in tenders worth Rs1,530 crore.

Outlook and valuation: GPIL, one of the mid-cap companies under our coverage, is the market leader in meters space. Given its strong order pipeline, huge opportunity in chosen niche and proven execution capabilities, we believe that the company can sustain about 20-25% growth in revenue over the next few years, over which period its OPM is also likely to remain stable. At the current market price, the stock trades at 4.6x FY2012E earnings per share (EPS) while it
discounts its historical (FY2010) book value by 1.2x. In our view, the stock does not adequately capture the potential compounded annual growth rate (CAGR) of 24.3% in profit over  FY2010-12E. We remain positive and maintain our Buy recommendation on the stock with price
target of Rs300 (6xFY2012E EPS) on the stock.

------BUZIBIZ------
Buy 3i Infotech - One Year Return - 60%
Recommendation: Buy
Price target: Rs:100
Current market price: Rs:63

3i Infotech's Q1FY2011 net income of Rs61.9 crore was below our expectation of Rs75.4 crore. The main reason for the deviation of the net income from our estimate was higher interest expenses (Rs37.5 crore) coupled with increased depreciation cost (Rs25.6 crore). We were expecting a lower interest cost of Rs25.6 crore and lower depreciation charge of Rs21.1 crore.
For Q1FY2011, the consolidated revenues grew by 1.4% quarter on quarter (qoq) and by 6.6% yoy to Rs637 crore. The sequential revenue growth was muted during the quarter on account of decline in the volume of the transaction services business sequentially; revenues for the same were down by -1.2% qoq to Rs242.1 crore. The information technology (IT) solutions business (IT services and products) clocked revenues of Rs394.9 crore, up by 3% qoq.

The operating profit margin (OPM) declined marginally by 20 basis points qoq to 19.5%, on account of the wage hikes effected during the quarter (about 10% blended). Nevertheless, better cost control on account of the IT solutions and services business? integration restricted the margin decline. For FY2011 the management has indicated the margins shall be maintained at the current level.

Starting from Q1FY2011, 3i Infotech has changed its reporting structure in segment reporting from three segments earlier (software products, IT services, transaction services) to two segments, namely IT solutions and transaction services. The IT solutions business? revenues grew by 3% qoq and by 8.3% yoy to Rs394.9 crore, thereby accounting for 62% of the total revenues. The transaction services business? revenues declined by 1.2% qoq but increased by 3.8% yoy to Rs242.1 crore, thereby accounting for 38% of the total revenues.

3i Infotech's performance for the quarter gone by was below our expectations on both the top line and the bottom line front. Nevertheless, its margin performance was quite better than our
expectations. Going forward, the management has hinted at an improving demand environment with healthy traction seen in the emerging geographies, like the UK, the Middle-East and the Asian markets. However, the US market is yet to pick up as per expectations.Nevertheless, the management is confident of achieving its FY2011 revenue guidance of 11-14% growth. We remain positive on the stock with a long-term perspective; however, in the medium term, stability in the quarterly financial performance will be a key trigger for the re-rating of the stock.

We maintain our Buy recommendation and price target of Rs100 on the stock. At the current market price of Rs63, the stock is trading at attractive valuations of 5.5x FY2011 earnings estimate and 5x FY2012 earnings estimate

------BUZIBIZ------
Buy Bank of Baroda - One Year Return - 25%
Recommendation: Buy
Price target: Rs:935
CMP: Rs:753

For Q1FY2011 Bank of Baroda (BoB) reported a bottom line of Rs859.16 crore vs our estimate of Rs794 crore. The bottom line grew by 25.4% year on year (yoy) supported by a strong growth in the net interest income (NII). The asset quality deteriorated on a sequential basis due to slippages from the small and medium enterprise (SME) and agri portfolios.

The NII for the quarter was up a robust 54.2% yoy to Rs1,858 crore, driven by a strong 30.7% year-on-year (y-o-y) growth in the advances.Meanwhile, the reported net interest margin (NIM) deteriorated by seven basis points sequentially led by a contraction in the yields.The non-interest income came down by 12.2% yoy to Rs617.2 crore due to a y-o-y decline in the banks treasury income.

The operating expenses were up by 5.5% yoy led by a 22.1% y-o-y increase in the other operating expenses. Meanwhile, the staff expenses contracted by 2.9% yoy. The cost-to-income ratio improved by 878 basis points yoy to 38.3% during the same period.

The business growth remained very strong with deposits and advances growing by 28.2% and 30.7% yoy respectively. The advances growth was led by the SME and retail segments. The current account and savings account (CASA) ratio of the bank stood at a healthy 38.1%, which was largely in line with that of the year-ago quarter.

The provisions for the quarter stood at Rs251.3 crore vs a write-back of Rs39 crore in the year-ago quarter. The asset quality of the bank deteriorated in the quarter on absolute
basis as the gross non-performing asset (GNPA) increased by 10.7% quarter on quarter (qoq) to Rs2,657.4 crore. However, the GNPA on a relative basis (%GNPA) remained largely stable at 1.41%. The deterioration in the asset quality was largely due to slippages from the bank?s SME and agri portfolios. The provisioning coverage as at the end of Q1FY2011 stood at 73%.The total restructured assets stand at Rs5,283.4 crore (about 2.8% of the advances) of which Rs476 crore (about 9% of the total restructured assets) have slipped into non-performing assets (NPA) so far.

The bank, as on June 30, 2010, remains adequately capitalised with its capital adequacy ratio (CAR) at 13.25% (as per Basel II norms) and tier-I CAR at 8.16%. The bank raised tier-II capital of Rs1,000 crore during the quarter.

Bank of Baroda has reported a sturdy performance for the quarter on the back of a strong business growth and a largely stable NIM. We continue to maintain our optimistic view for the bank on the back of its conservative approach, steady margins, and healthy loan book growth. We are tweaking our estimates to factor in the banks Q1FY2011 performance. At the current market price of Rs753, the stock trades at 6.6x its FY2012E earnings per share (EPS), 4x FY2012E pre-provisioning profit (PPP) and 1.5x its FY2012E adjusted book value (ABV). We
maintain our Buy recommendation on the stock with a revised price target of Rs935.

------BUZIBIZ------
Buy IPCA Laboratories - One Year return 25%
Cluster: Ugly Duckling
Recommendation: Buy
Price target: Rs:350
Current market price: Rs:280

Base profit misses expectations: For Q1FY2011 Ipca Laboratories (Ipca) reported an adjusted net profit of Rs41.8 crore. The Q1FY2010 net profit declined by 4.2% year on year (yoy) and was below our expectation of Rs48.6 crore largely due to higher employee and marketing expenses during the quarter. The total income of the company grew by 16.4% to Rs418 crore, which was in line with our estimate of Rs417.4 crore, essentially due to a 20% year-on-year (y-o-y) growth in the formulation exports. The operating profit margin (OPM) contracted by 300 basis points to 17%, which was lower than its normal margin of 19-20%. The margin was subdued on account of aggressive hiring of field force (up 130 basis points) and higher marketing expenses (up 140 basis points).

But sales growth remains in line: The 16.1% y-o-y growth in the domestic formulation business and the sharp pick-up in the export of the formulations (up 29% yoy; branded--up 15%,  generic--up 34%) elevated the sales to Rs418 crore. However ,the lower anti-malarial sales (down 20.5%; owing to delayed monsoon) remained a drag on the overall performance. The rupee?s appreciation against the major other currencies also hampered the revenue growth by 7%. The sales in the Commonwealth of Independent States (CIS; up 18% yoy) and the UK (up
33%) normalised during the quarter. The business of active pharmaceutical ingredients (APIs) remained subdued with only a 5% growth yoy due to a decline in the anti-malarial API and a loss in revenue from its product, Metopolol API, due to the closure of the plant of one of its clients.
Guided for 18.5-19% top line growth: The growth in the domestic market and the increasing contribution of tender from artemether + lumefantrine give the management confidence to achieve an overall growth of 18.5-19% (tweaked from the 18-20% growth guidance givenearlier) and to improve the earnings before interest, tax, depreciation and amortisation (EBITDA) margin from hereon. Ipca plans to incur Rs150 crore of capital expenditure (capex) in FY2011; of this Rs90 crore will be utilised towards the Sikkim facility.

Tweak estimates, maintain Buy: The Q1FY2011 results are below our estimates owing to the aggressive hiring and promotional activities undertaken by the management for its domestic business. We treat this quarter as an aberration and believe the growth will normalise in the
subsequent quarters. We also remain confident of a strong recovery in the anti-malarial sales (we expect only partial recovery in API sales). Thus, we tweak our estimates to factor in the partial loss from the anti-malarial API sales. Our revised earnings per share (EPS) estimates stand at Rs18.1 for FY2011 (vs Rs19.6) and at Rs22.6 for FY2012 (vs Rs23.5). At the current market price of Rs264, Ipca is attractively valued at 13.5x FY2011E earnings and 11.2x FY2012E earnings.

With a healthy balance sheet and improving return ratios, the stock is expected to get re-rated closer to its peers. Based on the strong earnings visibility from the export segment and the scale-up in the domestic business, we maintain our Buy recommendation on the stock with a price target of Rs350

------BUZIBIZ------
Buy Provogue India Ltd - One Year Return - 50%
Recommendation: Buy
Price target: Rs:90
Current market price: Rs:58


For Q1FY2011 Provogue India Ltd (PIL) has reported a strong sales growth of 41.1% on a year-on-year (y-o-y) basis to Rs103 crore (which is higher than our estimate of Rs90 crore). The growth was led by the revival in the domestic demand and the strong performance of the
export business. The same-store sales growth for the quarter was 8% while exports contributed 53% to the revenue as against the normal contribution of 33-34%.

Despite contraction in the gross margin due to the high contribution from the export segment, a strong operational improvement during the quarter aided PIL?s operating profit to grow at 40% on a y-o-y basis.The operating profit margin (OPM) stood flat on a y-o-y basis at 14.6%
(14.7% in Q1FY2010).

A lower other income restricted the earnings before interest, tax,depreciation and amortisation (EBITDA) growth to 15.8% on a y-o-y basis to Rs18.6 crore. In line with the same, the profit after tax (PAT) grew by 15.9% on a y-o-y basis to Rs7.8 crore (against our estimate of Rs7.2 crore). PIL is poised to report a healthy earnings compounded annual growth rate (CAGR) of 22.8% over FY2010-12 in its core business of fashion brand retailing. The growth will be achieved on the back of strong store expansion, buoyant demand and enhanced product range. We like the stock and consider it a good bet to play the Indian retail and retail infrastructure play. Hence, we maintain our Buy rating on the stock.

------BUZIBIZ------

Read more »

Weekly Beeps 01-08-2010

Indian market seems to have hit a soft patch after a really good June,with the key indices struggling to break above the current range.Disappointing earnings from a few bellwethers have not been of any help even as uncertainty prevails over the state of the global economy. Even the fact that food inflation has dipped below 10% and that monsoon deficit has shrunk failed to offset jitters linked to corporate results. Bulls are hoping that August turns out to be better than July.

Data on manufacturing PMI from across the globe will be announced on Monday as we step into a new month. Over the next few days, key domestic data points of importance will be those on Trade, IIP and Monthly Inflation. The first day of August will also see Auto and Cement companies come out with their monthly volumes. Monsoon has been pretty good and the forecast is also positive. So, all eyes will be on inflation data not just for the month but also weekly.

Globally too, a slew of economic reports will be released next week.Of particular interest will be the monthly US jobs report apart from Chinese manufacturing PMI reports. Talking of economic reports, the US second-quarter GDP slowed to 2.4% from 3.7% in Q1. But, stocks on Wall Street and Europe recovered after encouraging reports on Chicago manufacturing and consumer sentiment. Monday's start will hinge on how these two markets finish on Friday.

Results will of course continue to pour in as the time to declare quarterly financial statements has been extended to 45 days.Any further disappointment on this front will keep a lid on stock gains.On the whole, we expect the market to remain in a range but with a positive bias. The NSE Nifty could cross 5500 shortly provided global markets are supportive. It may even rise beyond that but some pressure is bound to be there at higher levels. So, trade wisely and don't take.

BUZIBIZ

Read more »

MARKET OUTLOOK 30-1-2010

US Markets closed negative.
Europe markets also ended red.
Asian markets are trading lower.
Expect Indian Markets to open weak.
Nifty: (5409) Support 5353 and Resistance 5447-5477.

INTRADAY BEEPS

BUY BANK BARODA TARGET 750 SL 725;
BUY ORIENT BANK TARGET 390 SL 373 ;
BUY IFCI TARGET 66 SL 60;
BUY GODEREJ IND TARGET 200 SL 187;
BUY VENKYS TARGET 640 SL 680;
BUY ARVIND TARGET 37 SL 33;
BUY PRATIBA TARGET 435 SL 420;
BUY GSPL TARGET 115 SL 104;

STOCK BEEPS


-KEC International in race to buy US-Based SAE Towers
-Citigroup Venture Cap Unit may exit from KS Oil
-Lanco Infra bags 1980 MW plant order from Maha Genco
-Ashok Leyland to acquire 26% stake in UK's Optare for USD 7.5 million
-PFC Categorized as 'Infrastructure Finance Company'
-Kalpataru Power Board approves Stock Split in ratio of 5:1
-Central Bank Board approves Rights Issue
-DLF plans to raise Rs 2500 croer in the next 15-18 months through
divestment of non core assets
-Results Today: ABB, BPCL, Reliance Power, RNRL, Reliance Infrastructure, SCI, Indian Hotels, Aditya Birla Nuvo, BGR Energy, DB Corp, Edelweiss Capital, Gujarat Alkalies, Himatsingka Seide, HCC,India Infoline, Mirc Electronics, Max India, Raymond, REI Agro,Karnataka Bank, KEC Intl, Torrent Pharma, Tata Chemicals


RESULT UPDATE

-Hero Honda Q1 Net profit at Rs 492 cr vs Rs 500 cr (YoY)
-ONGC Q1 Net profit at Rs 3,661 cr vs Rs 4,848 cr (YoY)
-Siemens Q3 PAT at Rs 156 cr vs Rs 200 cr ((Down 22% YoY))
-Petronet LNG Q1 net profit at Rs 111 cr vs Rs 103 cr
-Federal Bank Q1 PAT at Rs 131.8 cr vs Rs 136.3 cr ((YOY))
-GSPL Q1 Net profit at Rs 105.1 cr vs Rs 107.9 cr (QoQ)
-Everest Industries Q1 PAT at Rs 15.5cr vs Rs 9.44 cr ((YoY))
-Bank Of Maharashtra Q1 Net profit at Rs 118.4 cr vs Rs 101.8 cr (YoY)
-Puravankara Q1 net profit at Rs 36.7 cr vs Rs 10.2 cr (YoY)
-Omaxe Q1 net profit at Rs 21.7 cr vs Rs 15 cr (YoY)
-Central Bank Q1 Net profit at Rs 337 cr vs Rs 267 cr (YoY)
-Berger Paints Q1 Net profit at Rs 37 cr vs Rs 28.4 cr (YoY)
-Arvind Q1 Net profit at Rs 19 cr vs Rs 9.2 cr (YoY)
-Bata Q2 Net profit at Rs 25.9 cr vs Rs 18.4 cr (YoY)
-National Fertilizer Q1 PAT at Rs 17.7 cr vs Rs 23.8 cr ((YoY))
-LLoyd Steel Q1 Loss of Rs 77 cr vs Rs 14.5 cr ((YoY))
-Kalpataru Power Q1 PAT at Rs 36.8 cr vs Rs 32 cr ((YoY))
-GHCL Q1 PAT at Rs 43 cr vs Rs 35.cr ((YoY))
-Golden Tabacoo loss at Rs 25 cr vs PAT Rs 0.03Cr

Read more »

MARKET OUTLOOK 30-1-2010

US Markets closed negative.
Europe markets also ended red.
Asian markets are trading lower.
Expect Indian Markets to open weak.
Nifty: (5409) Support 5353 and Resistance 5447-5477.

INTRADAY BEEPS

BUY BANK BARODA TARGET 750 SL 725;
BUY ORIENT BANK TARGET 390 SL 373 ;
BUY IFCI TARGET 66 SL 60;
BUY GODEREJ IND TARGET 200 SL 187;
BUY VENKYS TARGET 640 SL 680;
BUY ARVIND TARGET 37 SL 33;
BUY PRATIBA TARGET 435 SL 420;
BUY GSPL TARGET 115 SL 104;

STOCK BEEPS


-KEC International in race to buy US-Based SAE Towers
-Citigroup Venture Cap Unit may exit from KS Oil
-Lanco Infra bags 1980 MW plant order from Maha Genco
-Ashok Leyland to acquire 26% stake in UK's Optare for USD 7.5 million
-PFC Categorized as 'Infrastructure Finance Company'
-Kalpataru Power Board approves Stock Split in ratio of 5:1
-Central Bank Board approves Rights Issue
-DLF plans to raise Rs 2500 croer in the next 15-18 months through
divestment of non core assets
-Results Today: ABB, BPCL, Reliance Power, RNRL, Reliance Infrastructure, SCI, Indian Hotels, Aditya Birla Nuvo, BGR Energy, DB Corp, Edelweiss Capital, Gujarat Alkalies, Himatsingka Seide, HCC,India Infoline, Mirc Electronics, Max India, Raymond, REI Agro,Karnataka Bank, KEC Intl, Torrent Pharma, Tata Chemicals


RESULT UPDATE

-Hero Honda Q1 Net profit at Rs 492 cr vs Rs 500 cr (YoY)
-ONGC Q1 Net profit at Rs 3,661 cr vs Rs 4,848 cr (YoY)
-Siemens Q3 PAT at Rs 156 cr vs Rs 200 cr ((Down 22% YoY))
-Petronet LNG Q1 net profit at Rs 111 cr vs Rs 103 cr
-Federal Bank Q1 PAT at Rs 131.8 cr vs Rs 136.3 cr ((YOY))
-GSPL Q1 Net profit at Rs 105.1 cr vs Rs 107.9 cr (QoQ)
-Everest Industries Q1 PAT at Rs 15.5cr vs Rs 9.44 cr ((YoY))
-Bank Of Maharashtra Q1 Net profit at Rs 118.4 cr vs Rs 101.8 cr (YoY)
-Puravankara Q1 net profit at Rs 36.7 cr vs Rs 10.2 cr (YoY)
-Omaxe Q1 net profit at Rs 21.7 cr vs Rs 15 cr (YoY)
-Central Bank Q1 Net profit at Rs 337 cr vs Rs 267 cr (YoY)
-Berger Paints Q1 Net profit at Rs 37 cr vs Rs 28.4 cr (YoY)
-Arvind Q1 Net profit at Rs 19 cr vs Rs 9.2 cr (YoY)
-Bata Q2 Net profit at Rs 25.9 cr vs Rs 18.4 cr (YoY)
-National Fertilizer Q1 PAT at Rs 17.7 cr vs Rs 23.8 cr ((YoY))
-LLoyd Steel Q1 Loss of Rs 77 cr vs Rs 14.5 cr ((YoY))
-Kalpataru Power Q1 PAT at Rs 36.8 cr vs Rs 32 cr ((YoY))
-GHCL Q1 PAT at Rs 43 cr vs Rs 35.cr ((YoY))
-Golden Tabacoo loss at Rs 25 cr vs PAT Rs 0.03Cr

Read more »

Stock beeps 29-07-2010

-Mahindra satyam writes to NYSE on merger intent with Tech mahindra
-ABB open offer oversubscribed
-SBI – announces acquisition of State Bank of Indore
-Andhra Cements to consider preferential issue to to HDFC & IDFC on 30 July
-June Infra sector growth at 3.4% versus 6.3% (YoY)
-Central Bank Of India to hike deposit rates by 25-50 bps from August
-Lakshmi Machine board approves buyback up to Rs 2,045/sh
-Results today: HCL Tech, Hero Honda, ONGC, SAIL, Siemens, Aban Offshore, Alok Inds, Apollo Tyres, Arvind, Bank of Maharashtra, BOB,Federal Bank, GHCL, Great Eastern Shipping, Gujarat State Petronet,HDIL, Hexaware Tech, IPCA Labs, Kalpataru Power, Nagarjuna Fertiliser, NHPC, Novartis India, Oriental Bank, Petronet LNG,Ultratech Cement

Ex-Dates
-BASF India : Ex-Dividend @ Rs 8/share
-MMTC : Ex-Bonus 1:1 & Ex-Split 10:1
-SAIL : Ex-Dividend @ Rs 1.7/share
-TCS : Ex-Dividend @ Rs 2/share

RESULT UPDATE

-DLF Q1 Net profit at Rs 411 Cr Vs Rs 426.38 Cr (QoQ)
-Tata Comm Q1 cons ((YOY)) Net loss at Rs 281 Cr vs loss of Rs 55. 1cr
-Trent Q1 Net Profit At Rs 8 Cr Vs Rs 5.1 Cr
-Voltas Q1 Net Profit At Rs 93.2 Cr Vs Rs 78.9 Cr (YoY)
-JSPL Q1 Net Profit At Rs 957 Cr Vs Rs 988.5 Cr (YoY)
-GMDC Q1 PAT at Rs 104.7cr vs Rs 80.1cr ((YoY))
-Essel Propack Q1 PAt at Rs 12.2cr vs Rs 9.4cr ((YoY))
-Neyveli Lignite Q1 PAT at Rs 342cr vs Rs 287cr ((YoY))
-EID Parry Q1 PAT at Rs 7.3cr vs Rs 57.25cr ((YoY))
-EMCO Q1 net loss at Rs 25 crore vs PAT of Rs 8.11cr ((YOY))
-Delta Corp Q1 PAT at Rs 4.3cr vs Rs 2.36cr ((YoY))
-GTL Infra Q1 Net Loss At Rs 19.3 Cr Vs PAT of Rs 18.69cr ((YoY))
-MMTC Q1 PAT at Rs 55.3cr vs Rs 41.2cr ((YoY))

Market outlook 28-07-2010

US Markets closed flat.
Europe markets ended positive.
Asian markets are trading mixed.
Expect Indian Markets to open flat.
Nifty: (5430) Support 5366 and Resistance 5477

INTRADAY BEEPS

BUY BANCO INDIA TARGET 144 SL 131;
BUY JET AIRWAYS TARGET 655 SL 635;
BUY SKUMAR NATION TARGET 89 SL 80;
BUY LIBERTY TARGET 108 SL 97;
BUY PRAJ IND TARGET 83 SL 74;
BUY AEGIS LOGISTICS TARGET 475 SL 455;
BUY TULIP TARGET 199 SL 188;
BUY BOMBAY RAYON TARGET 280 SL 267;


STOCK BEEPS

-ABB to be deleted from MSCI Index w.e.f today
-Oil Secretary says: ONGC Videsh to submit offer for BP Assets in Vietnam
-HCC receives Rs 126.225 crore contract from Hindalco
-Redington to raise the FII ceiling limit and NRIs to 100% from 24%
-SKS Microfinance IPO opens Today
-Emami Infrastructure lists today
-Cummins Inc. raises India sales growth guidance to 49% (versus 41% a quarter earlier)
-Results Today: DLF, JSPL, Sun Pharma, HCL Tech, M&M, Tata Comm, Alfa Laval, Chennai Petroleum, Corporation Bank, EID Parry, Essel Propack,Havells India, Kirloskar Oil, Lakshmi Machine, Lupin, Marico, Merck,MMTC, MRF, Neyveli Lignite, Patni Computer, Sobha Developer, Sun TV
Network, Trent, Voltas

Board Meet

-NRB Nearing: Board Meet for Bonus
-Lakshmi Machine Work: Buy-Back

IPO LISTING:
IPO Listing Detail - Aster Silicates Ltd

Listing Date: Wednesday, July 28, 2010
NSE Symbol: ASTERSILI
Listing In: 'B' Group of Securities
ISIN: INE900K01012
Issue Price: Rs. 118.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share

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Market outlook 28-07-2010

US Markets closed flat.
Europe markets ended positive.
Asian markets are trading mixed.
Expect Indian Markets to open flat.
Nifty: (5430) Support 5366 and Resistance 5477

INTRADAY BEEPS

BUY BANCO INDIA TARGET 144 SL 131;
BUY JET AIRWAYS TARGET 655 SL 635;
BUY SKUMAR NATION TARGET 89 SL 80;
BUY LIBERTY TARGET 108 SL 97;
BUY PRAJ IND TARGET 83 SL 74;
BUY AEGIS LOGISTICS TARGET 475 SL 455;
BUY TULIP TARGET 199 SL 188;
BUY BOMBAY RAYON TARGET 280 SL 267;


STOCK BEEPS

-ABB to be deleted from MSCI Index w.e.f today
-Oil Secretary says: ONGC Videsh to submit offer for BP Assets in Vietnam
-HCC receives Rs 126.225 crore contract from Hindalco
-Redington to raise the FII ceiling limit and NRIs to 100% from 24%
-SKS Microfinance IPO opens Today
-Emami Infrastructure lists today
-Cummins Inc. raises India sales growth guidance to 49% (versus 41% a quarter earlier)
-Results Today: DLF, JSPL, Sun Pharma, HCL Tech, M&M, Tata Comm, Alfa Laval, Chennai Petroleum, Corporation Bank, EID Parry, Essel Propack,Havells India, Kirloskar Oil, Lakshmi Machine, Lupin, Marico, Merck,MMTC, MRF, Neyveli Lignite, Patni Computer, Sobha Developer, Sun TV
Network, Trent, Voltas

Board Meet

-NRB Nearing: Board Meet for Bonus
-Lakshmi Machine Work: Buy-Back

IPO LISTING:
IPO Listing Detail - Aster Silicates Ltd

Listing Date: Wednesday, July 28, 2010
NSE Symbol: ASTERSILI
Listing In: 'B' Group of Securities
ISIN: INE900K01012
Issue Price: Rs. 118.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share

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About us

BUZBIZ is an Investment Advisory Company which basically provides recommendations for Stocks- Cash and F&O traded in NSE & BSE.We also provide weekly & daily newsletters for preparing you for trading.

We provide recommendations Live through SMS and Yahoo Messenger. Our SMS facility is a very efficient system ensuring the instant delivery of Message without any loss of time. So, the clients get adequate time To enter the trade.

We offer diversified range of products according to the difference in the Needs of an investor, trader or a broker. With a very experienced research team consisting of each and every analyst having an experience of more than 5-10 years in the field, we assure 90-96% accuracy in our recommendations with personal attention given to each and every client.

Success:
We Think While We Are About To Sleep We Dream While Sleeping
We Execute That While We Are Awake...!!

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Market outlook 23-07-2010

US Markets closed higher.
Europe markets also ended positive.
Asian markets are trading green.
Expect Indian Markets to open positive..
Nifty: (5442) Support 5386 and Resistance 5453-5495

INTRADAY BEEPS

BUY CAIRN TARGET 335 SL 319 ;
BUY TATA STEEL TARGET 555 SL 535;
BUY UBL TARGET 300 SL 275;
BUY 3iINFOTECH TARGET 70 SL 64;
BUY RPOWER TARGET 178 SL 170;
BUY TITAN TARGET 2800 SL 2730;
BUY HCC TARGET 145 SL 132
BUY BAJAJ HIND TARGET 120 SL 110;
BUY JP ASSO TARGET 140 SL 126;
BUY UNIPHOS TARGET 200 SL 181;

Market outlook 22-07-2010

US Markets closed negative.
Europe markets ended green.
Asian markets are trading weak.
Expect Indian Markets to open negatiive.
Nifty: (5399) Support 5366-5342 and Resistance 5416-5453

INTRADAY BEEPS

BUY HAVELLS TARGET 690 SL 665;
BUY MOTHERSON SUMI TARGET 175 SL 160;
BUY JSW STEEL TARGET 1190 SL 1123;
BUY ARSS INFRA TARGET 1250 SL 1200;
BUY GODAWARI POWER TARGET 260 SL 249 ;
BUY DS KULKARNI TARGET 78 SL 72;
BUY ORIENT BANK TARGET 368 SL 355;
BUY M&M TARGET 630 SL 605;


STOCK BEEPS

-Results Today: ACC, Ambuja Cements, Bajaj Auto, ITC, Dr Reddys Labs,Idea Cellular, PNB, Bajaj Holdings, CRISIL, Deepak Fertiliser, Dish TV, Gujarat Gas, IDBI Bank, HOV Services, ING Vysya Bank, Mahindra Forging, Power Finance, Shriram Transport, Temptation Food, Vijaya
Bank, Zee News
-SKIL Infra makes 20% open offer for Everonn at Rs 536.16/share;open offer from Sep 9 to Sep 28
-DLF to mull Arm DLF Brands' Share issue on July 28
-Tata Power Issued 100 NCD worth Rs 350 crore at 9.15%
-EGoM meet headed by Steel secretary Atul Chaturvedi on iron ore exports today
-Foreign Funds acquire 15% stake in REI Agro, company raised Rs 1245 crore via rights issue
-Parkway shareholders vote in favor of Khazanah bid
-Cabinet to decide on Power Grid FPO today

RESULT UPDATE

-KPIT Cummins Q1 net profit at Rs 19.36 cr vs Rs 20.79 cr (QoQ)
-Persistent Q1 net profit at Rs 34.5 cr vs Rs 39.7 cr
-Mastek Q1 net profit at Rs 2.5 cr vs Rs 15.3 cr (QoQ)
-Pidilite Industries PAT at Rs 133.7 cr vs Rs 97.2 cr ((YoY))
-United Breweries Q1 PAT at Rs 76.13 cr vs Rs 35.5 cr ((YoY))
-Mangalore Chemicals Q1 PAT at Rs 12.5 cr vs Rs 7.5 cr ((YoY))
-Mahindra Life Space Q1 PAT at Rs 14.4 cr vs Rs 10.4 cr
-Birla Corp Q1 Net profit at Rs 118.3 cr vs Rs 155.3 cr (YoY)

Ex-Dates
-Hindustan Zinc : Ex-Dividend @ Rs 6/share
-J&K Bank : Ex-Dividend @ Rs 22/share
-Mcleod Russel : Ex-Dividend @ Rs 4/share
-Nagarjuna Construction : Ex-Dividend @ Rs 13/share
-Sun TV Network : Ex-Dividend @ Rs 6/share

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Market outlook 22-07-2010

US Markets closed negative.
Europe markets ended green.
Asian markets are trading weak.
Expect Indian Markets to open negatiive.
Nifty: (5399) Support 5366-5342 and Resistance 5416-5453

INTRADAY BEEPS

BUY HAVELLS TARGET 690 SL 665;
BUY MOTHERSON SUMI TARGET 175 SL 160;
BUY JSW STEEL TARGET 1190 SL 1123;
BUY ARSS INFRA TARGET 1250 SL 1200;
BUY GODAWARI POWER TARGET 260 SL 249 ;
BUY DS KULKARNI TARGET 78 SL 72;
BUY ORIENT BANK TARGET 368 SL 355;
BUY M&M TARGET 630 SL 605;


STOCK BEEPS

-Results Today: ACC, Ambuja Cements, Bajaj Auto, ITC, Dr Reddys Labs,Idea Cellular, PNB, Bajaj Holdings, CRISIL, Deepak Fertiliser, Dish TV, Gujarat Gas, IDBI Bank, HOV Services, ING Vysya Bank, Mahindra Forging, Power Finance, Shriram Transport, Temptation Food, Vijaya
Bank, Zee News
-SKIL Infra makes 20% open offer for Everonn at Rs 536.16/share;open offer from Sep 9 to Sep 28
-DLF to mull Arm DLF Brands' Share issue on July 28
-Tata Power Issued 100 NCD worth Rs 350 crore at 9.15%
-EGoM meet headed by Steel secretary Atul Chaturvedi on iron ore exports today
-Foreign Funds acquire 15% stake in REI Agro, company raised Rs 1245 crore via rights issue
-Parkway shareholders vote in favor of Khazanah bid
-Cabinet to decide on Power Grid FPO today

RESULT UPDATE

-KPIT Cummins Q1 net profit at Rs 19.36 cr vs Rs 20.79 cr (QoQ)
-Persistent Q1 net profit at Rs 34.5 cr vs Rs 39.7 cr
-Mastek Q1 net profit at Rs 2.5 cr vs Rs 15.3 cr (QoQ)
-Pidilite Industries PAT at Rs 133.7 cr vs Rs 97.2 cr ((YoY))
-United Breweries Q1 PAT at Rs 76.13 cr vs Rs 35.5 cr ((YoY))
-Mangalore Chemicals Q1 PAT at Rs 12.5 cr vs Rs 7.5 cr ((YoY))
-Mahindra Life Space Q1 PAT at Rs 14.4 cr vs Rs 10.4 cr
-Birla Corp Q1 Net profit at Rs 118.3 cr vs Rs 155.3 cr (YoY)

Ex-Dates
-Hindustan Zinc : Ex-Dividend @ Rs 6/share
-J&K Bank : Ex-Dividend @ Rs 22/share
-Mcleod Russel : Ex-Dividend @ Rs 4/share
-Nagarjuna Construction : Ex-Dividend @ Rs 13/share
-Sun TV Network : Ex-Dividend @ Rs 6/share

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Market outlook 21-07-2010

US Markets closed positive.
Europe markets closed negative.
Asian markets are trading green.
Expect Indian Markets to open positive..
Nifty: (5368) Support 5342 and Resistance 5416-5453

INTRADAY BEEPS

BUY LITL TARGET 72 SL 66 ;
BUY HCC TARGET 140 SL 130 ;
BUY HIND PETRO TARGET 450 SL 430;
BUY VIP IND TARGET 395 SL 375;
BUY FEDERAL BANK TARGET 370 SL 357;
SELL LIC HSG FIN TARGET 1000 SL 1040;
SELL AXIS BANK TARGET 1350 SL 1380 ;
SELL JINDAL STEEL TARGET 600 SL 625;


STOCK BEEPS

-Hindustan Media Ventures to list today
-Globus Cons to relist today
-Cinemax looking to raise USD 30-40 million by PE partner to expand screens & locations as advised by Enam
-Adani Enterprises QIP subscribed 1x ;Issue was priced at Rs 536.15/share
-Orbitech (Citigroup arm) brings down its stake in Polaris by 2.5% in July; Orbitech stake in Polaris down from 43.33% to 19.86% since September 2009
-Alstom Holdings & Schneider Electric Group postpone open offer to buy a 20% stake in Areva T&D India till further notice
-Kishore Biyani's Future Group makes offer for distressed Vishal Retail, could derail a bid by TPG– Mint
-Results today: Kotak Mah Bank, Yes Bank, TVS Motor, Mastek, Orchid Chemical, NIIT, KPIT Cummins, REC, Thermax, Abhishek Inds, Alstom Projects, Bajaj Finserv, Birla Corp, Engineers India, Hyderabad Inds,Ingersoll Rand, Karur Vysya Bank, Monsanto India, Pidilite Inds,Transport Corp, United Breweries

RESULT UPDATE

-USL Q1 Net profit at Rs 121 cr vs Rs 177 cr (YoY)
-SKF India Q2 Net profit at Rs 48.5 cr vs Rs 17.7 cr (YoY)
-JK Paper Q1 Net profit at Rs 29.1 cr vs Rs 20.2 cr (YoY)
-Panacea Biotec Q1 Net profit at Rs 32.6 cr vs Rs 13 cr (YoY)
-Tata Coffee Q1 PAT at Rs 5.7 cr vs Rs 4.54 cr ((YoY))

Ex-Dates

-Emami : Ex-Split @ 2 :1, Ex-Dividend @ 6/share
-Zensar Tech : Ex-Bonus @ 2 :1, Ex-Dividend @ 5.5/share
-Tech Mahindra : Ex-Dividend @ Rs 3.5/share

IPO Listing Detail - Hindustan Media Ventures Ltd

Listing Date: Wednesday, July 21, 2010 (Today)
NSE Symbol: HMVL
ISIN: INE871K01015
Issue Price: Rs. 166.00 Per Equity Share
Face Value: Rs. 10.00 Per Equity Share

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Market outlook 20-07-2010

US Markets closed green.
Europe markets also ended weak.
Asian markets are trading mixed.
Expect Indian Markets to open flat.
Nifty: (5386) Support 5342 and Resistance 5453

INTRADAY BEEPS

BUY ASHOK LEYLAND TARGET 75 SL 68;
BUY SYNDICATE BANK TARGET 105 SL 98;
BUY YES BANK TARGET 309 SL 296;
BUY HDIL TARGET 270 SL 260;
BUY BHARTI AIRTEL TARGET 310 SL 295 ;
BUY GMR INFRA TARGET 63 SL 59;
BUY HIND PETRO TARGET 460 SL 444;
BUY IFCI TARGET 63 SL 58 ;
BUY STC INDIA TARGET 455 SL 438 ;


STOCK BEEPS

-Results Today: United Spirits, Zee Entertainment, Bombay Dyeing, JK Paper, Monsanto India, NIIT Tech, Noida Toll, Panacea Biotec, SKF India, Tata Coffee
-UPA govt may tighten iron ore export controls;GoM to discuss new Mining Policy on July 22
-Shriram group may take over Vishal’s retail arm
-Khazana may up Parkway offer price
-Hindustan Copper: Government approves disinvestment of 10%
-Bayer CropScience : Board approves selling 100 acres of Land at Thane

RESULT UPDATE

-Sesa Goa Q1 net profit at Rs 1,302 cr vs Rs 422 cr (YoY)
-Mindtree Q1FY11(QoQ) Net profit down 70.9% from Rs 54.5 cr to Rs 15.81 cr
-Aventis Pharma Q2 Net profit at Rs 42.4 cr vs Rs 47.1 cr (YoY)
-Mid Day Q1 (QoQ) Net loss at Rs 2.4 cr vs Rs loss of Rs 0.10 cr
-Bayer Crop Q1 PAT at Rs 49.1 cr vs Rs 50 cr ((YoY))
-Balaji Tele Q1 (QoQ) Net profit at Rs 2.9 cr vs Rs 3.4 cr (QoQ)
-PTC Q1 Net profit at Rs 27.8 cr vs Rs 33.3 cr
-Container Corp Q1 Net profit at Rs 194 cr vs Rs 201 cr
-Triveni Engg Q3 Loss of Rs 14.23 cr Vs Profit of Rs 39.8 cr

Ex-Dates

-Amara Raja : Ex-Dividend @ Rs 2.9/share
-Castrol India : Ex-Dividend @ Rs 7/share
-Great Eastern Sh : Ex-Dividend @ Rs 8/share
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Weekly Beeps 18-07-2010

The failure of the key indices to head higher after making new intermediate highs this week shows that the market is a little jittery. The disappointing IIP report and stubbornly high inflation have only added to the confusion. Global cues too are not particularly rosy amid persistent worries over the state of affairs in the US, EU and China. The only positive development is the improvement in the euro versus the dollar. So, the near-term trend may continue to be driven partly by earnings and partly by external factors.

The key indices may find it tough to accelerate beyond a point if world markets are not supportive. A lot will hinge on how the rest of the results from India Inc. unfold. A big positive for India is the fact that FIIs seem to be fairly upbeat about growth prospects here.So, any fall will only make our market that much more attractive at a time when the world is struggling to keep the momentum going.

Inflation is a big worry and may remain so for some time to come. But,a calibrated monetary tightening has already been discounted and won't be much of a problem. Given this backdrop, one could continue to be positive on India over the medium to long-term though some caution is
warranted in the near term owing to a fragile global situation.

============== >< =============
Market Data > Swaraj Engines Ltd
============== >< =============

Mkt. Price NSE (Rs) 445

52-week High/Low (Rs) 464 / 260

NSE Symbol SWARAJENG

Perfect past + Bright future = Long term wealth creation opportunity

We all know of how Warren Buffett was guided by the learnings of his mentor Benjamin Graham in the early part of his career. But few would know that Buffett's later investments (the ones that made him really successful as an investor) were more influenced by the philosophy of Philip Fisher and close friend, Charlie Munger. Munger would rather invest in a good business bought at a fair price, than in a really cheap, dull company that could never really grow. In fact, Munger convinced Buffett that they should pay a slightly higher premium for good businesses.

And thus, Buffett today realizes that when you find a really good business run by first class people, chances are a price that looks high isn't high. The combination is rare enough. And thus such a business is worth a pretty good price.

We can say the same for our Hidden Treasure for this month - Swaraj Engines (SEL). The stock isn't ultra cheap now at almost 14 times earnings. But then, you are paying such a price for a company that has a brilliant long term track record of profitability and wealth creation.

SEL manufactures diesel engines for the 'Swaraj' brand of tractors owned by the auto major M&M. And for the most part of the past 15 years, it has maintained a clean balance sheet and has generated good profits and cash flows. For instance, since FY96, it has averaged return on equity of around 32%. Return on invested capital has averaged a whopping 63%! The company is also amongst the most efficient in its industry when it comes to managing working capital.
Its dividend payout history also inspires confidence. All in all, the management has been highly effective all these years. It has managed the business without taking undue risks.

Overall, we see SEL as an indirect bet on India's agriculture sector.Given the focus on increased farm productivity, the demand for tractors is on the rise. This should benefit the company in the long run.

The stock is trading at around 14.2 times its FY10 earnings. Based on out estimated FY13 earnings, it is trading at just 8.8 times.Considering its strong past track record and equally good expectations from the future, we believe the stock should be part of the portfolio of long term investors. The stock has the potential to turn into a 2-bagger over the next 4-5 years. We thus advise you to 'Buy' into the same at the current levels.

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