Investment Advice for Stocks (Share), MF and Personal Finance

Shravin Bharti Mittal joins AIRTEL

admin — Fri, 03 Sep 2010 10:56:10 +0000

Shravin Bharti Mittal, son of Sunil Bharti Mittal, the founder and chair of Bharti Airtel Ltd., joined India’s largest mobile phone company as a manager at Bharti Airtel International (Netherlands) B.V., the holding company of the firm’s international business.

Shravin Mittal, a graduate from the University of Bath in the U.K. who has a twin brother and an older sister, will be paid 50,000 euros a year for his work, the company said. He is the third family member from the Mittal family to join the business. Sunil Mittal’s younger brothers—Rajan Bharti Mittal and Rakesh Bharti Mittal—are both on Bharti Airtel’s board as non-executive directors. Shravin Mittal is the only one, apart from his father, to hold an executive position.

Shravin Mittal, who was previously working as a telecom analyst in the investment banking division of J.P. Morgan Cazenove in London, now joins the league of children of Indian industry bigwigs who have been grooming their sons and daughters to one day lead the company they created.

“It may be part of a succession plan,” said a Mumbai-based telecom analyst, who asked not to be named. “It’s a natural and normal phenomenon seen in Indian corporates.”

HCL Corp’s founder Shiv Nadar’s only daughter Roshni Nadar, is now an executive director and chief executive at the company that holds HCL Technologies Ltd., India’s fourth largest software exporter, and HCL Infosystems Ltd.

When India Real Time asked Sunil Mittal whether Shravin Mittal’s new job marked the beginning of his succession plan, Mr. Mittal would only say: “I am still around.”

Bharti Airtel has always attributed its success to the entrepreneurial spirit within the company’s independent management. Top managers with all its group companies are outsiders.

And watchers say Bharti Airtel would do well to maintain that, if it wants to be as well respected as independently-run companies like Infosys Technologies Ltd., India’s second largest software exporter, which doesn’t have a single member of their founders’ immediate families in the company, let alone in management.

Still, in India, investors typically look at a family member’s appointment as a positive for the company, said an analyst at an international brokerage.

“This shows that the promoters (founders) have a long-term take on the sector and the company,” he said, adding that if such an appointment isn’t made, industry observers sometimes start wondering whether the founders plan to exit the company at some point in time. But the children do face scrutiny, the analyst said.

“The son has to deliver like the current management had done, which will be looked at by the investors closely,” he added.

Shravin Bharti Mittal joins AIRTEL is a post from: Indian Stock Market Tips

TCS –Accumulate- Angel Securites

admin — Fri, 03 Sep 2010 08:13:00 +0000

TCS’s UK-based subsidiary Diligenta, which provides BPO services to the UK life and pension sectors, has won new contracts from the Phoenix Group and Old Mutual International.

The new contract with the Phoenix Group is an extension by another six years till 2018. Both the Phoenix Group and Old Mutual International contracts are expected to increase the number of policies administered from 3.6mn to 5.0mn and generate £250 million over the next eight years.

This is a positive development for TCS as it will help it further strengthen its presence in UK’s life and pension sectors. We maintain an ACCUMULATE on the stock, with a target price of Rs920.

TCS –Accumulate- Angel Securites is a post from: Indian Stock Market Tips

Patels Airtemp India –Buy- Sharekhan

admin — Fri, 03 Sep 2010 05:41:00 +0000

Patels Airtemp’s Q1FY2011 results showed top line having increased by 8.2% y-o-y to Rs16.6 crore. Conventionally, the first quarter is a sluggish quarter. The operating profit margin (OPM) improved by 430 basis points y-o-y to 22.2% in Q1FY2011 from 17.9% in the corresponding quarter of last year.

This was mainly due to increased manufacturing capacities, which reduced low- margin trading of goods, resulting in lower raw material cost as a percentage of sales. Consequently, the operating profit for the quarter rose by 28.2% to Rs3.5 crore.

The interest cost increased to Rs0.5 crore on account of rising working capital borrowings for the quarter. Further, the depreciation charge also increased to Rs0.25 crore due to the capex undertaken earlier in Q4FY2010. The net profit came in at Rs1.8 crore, a 12.1% year-on-year (y-o-y) increase.

Its order book improved to Rs68 crore from Rs61 crore in Q4FY2010. Order inflows worth Rs9 crore from GEA for Paradip Refinery Project helped boost the order book.

The surge in investments in the oil and gas, power and refinery sectors will augur well for the company. Also, the company is optimistic about the opportunities in the nuclear power sector. The outlook for the fertiliser sector remains bright with huge investments lined up in the sector. We maintain our estimates for FY2011 and FY2012 in view of better execution in subsequent quarters. We expect the top line to grow at a compounded annual growth rate of 19% over FY2010-12 along with sustenance of margins at the FY2010 level.

At the current market price, the stock is available at 4x FY2012E earnings. Given its low debt equity ratio of 0.2:1, dividend yield of 2%, and healthy return on net worth of 28.7%, the valuations appear quite attractive. We maintain our BUY recommendation on the stock.

Patels Airtemp India –Buy- Sharekhan is a post from: Indian Stock Market Tips

Bajaj Electricals –Neutral- Angel Securities

admin — Fri, 03 Sep 2010 02:31:00 +0000

Bajaj Electricals has bagged three orders worth Rs408 crore in the engineering and procurement (E&P) division. The largest order is worth Rs324 crore for its transmission line towers (TLT) business, which is to be executed over the next two years.

The second order is worth Rs61.5 crore for rural electrification in Chhindwara, Madhya Pradesh, which is to be executed over 18–24 months. The third order, worth Rs22.5 crore, is for the company’s high mast and street lighting business, which will be executed over the next 2–3 months.

We view the receipt of these orders positively, as they strongly improve the company’s revenue visibility. Currently, the company’s order book stands at Rs1,150cr, which is about 1.5x FY2010 sales of the E&P division, giving decent revenue visibility to the company.

Top-line growth is expected to be supported by the company’s other divisions as well. However, the company’s margins are expected to remain under pressure. Currently, the stock is trading at 13.5x its FY2012E EPS, factoring in most of the growth. We maintain a NEUTRAL rating on Bajaj Electricals.

Bajaj Electricals –Neutral- Angel Securities is a post from: Indian Stock Market Tips

Credit Card Charges : Know more and be Safe from Debt

admin — Thu, 02 Sep 2010 22:35:00 +0000

Credit card gives you the ease to shop anywhere and everywhere with minimal hassle. It helps you buy big and lets you pay later, with a one-month grace period.

But not understanding the terms and conditions in a credit card – like the interest and other charges levied by card companies – could leave you gasping under a mountain of debt.

Often, a cardholder is struck by the realisation only when the monthly credit card statement reflects the hefty charges. For every card holder, it is imperative to study the ‘Most Important Terms and Conditions’ (MITC) listed on the card issuers’ websites carefully.

Here are some key clauses you need to be aware of, in order to avoid rude shocks later.

Cash withdrawal

While your credit card can be used to withdraw cash from the automated teller machines, or ATMs, if required, it is best to save this option for emergencies. This is because cash withdrawal typically attracts an upfront charge – of close to 2.5% of the amount withdrawn.

Moreover, unlike cards swiped at point-of-sale (POS) terminals where the amount becomes due after the expiry of the credit or grace period allowed to the card holder, in this case, the payment is due from the date of withdrawal.

The rate of interest (termed finance charges in credit card parlance) to be paid on the amount could be in the range of 39-45% per annum. “Some banks also levy further charges if the withdrawal is made via teller counters at their branches,” adds VN Kulkarni, chief counsellor with the Bank of India-backed Abhay Credit Counselling Centre.

Over limit charges

If you fail to keep track of your credit limit and end up overdrawing, you would be liable to pay the relevant charges.

Typically, it is 2.5% of the overdrawn amount, subject to a minimum of Rs 500.

Also, you would do well to remember that your credit limit is inclusive of any charges or late payment penalties payable by you.

Outstation Cheque charges

All banks have a cheque collection policy that also covers terms related to outstation cheques. If you choose this mode to make your payment, you may be charged close to 1% of the cheque value or Rs 50 for every instrument. Some banks, however, do waive these charges.

You need go through your issuer’s MITC to understand the applicable charge structure.

EMI processing charges

Several times, at the discretion of the credit card companies, cardholders with outstanding dues are allowed to convert the lump-sum repayment due into instalment-based payments.

“The card issuer may promise to charge the existing rate of interest, but you need to watch out for the processing charges that could be built in, pushing up the entire amount payable,” advises Madan Mohan, chief counsellor with the ICICI Bank-backed Disha Financial Counselling centre.

Right of lien

If you have availed of a credit card from the bank where you maintain an account, the funds lying in the latter could be used towards repayment of your card dues.

This could be applicable to the add-on credit card holder as well.

Several card issuers’ terms and conditions stipulate that in the event of non-payment of dues by the card holder, they reserve the right to set-off the amount against any account with credit balance maintained by the individual.

Credit Card Charges : Know more and be Safe from Debt is a post from: Indian Stock Market Tips

HDFC Bank to start 150 more branches by the end of this fiscal

admin — Thu, 02 Sep 2010 11:10:00 +0000

Paresh Suthankar, Executive Director of HDFC Bank said, “We will be adding between 150 and 200 branches pan-India by this fiscal end, of which over 50 per cent shall be opened in rural and under banked areas”.

He said, “The proposed expansion of branch network shall be undertaken in this quarter and in subsequent next two quarters. As part of this proposed branch expansion plan 10 new branches have been added in Gujarat and another eight shall be opened in the state in next two months”.

Neeraj Jha, Head, Corporate Communications HDFC Bank said, “Presently we have a branch in Bahrain, and several representative offices overseas. We are planning to open a branch in Hong Kong soon”.

As a move towards financial inclusion, the bank also intends to broaden its rural reach by using the business correspondents.

HDFC Bank to start 150 more branches by the end of this fiscal is a post from: Indian Stock Market Tips

Maruti Suzuki launches limited edition of Swift

free stock tips — Thu, 02 Sep 2010 01:46:00 +0000

Maruti Suzuki India, country`s largest car manufacturer today launched limited edition of Swift, the iconic premium small car brand.

The limited edition car is branded – `Swift one million edition`.

The `Swift one million edition` is available in Vi version (petrol) at a price of Rs 4,83,079 (ex-showroom, Delhi). Only 1,000 units of this celebrations model are being offered.

The `Swift one million edition` shall be available in specially created `Goldsmith Black` color and shall be loaded with smart and attractive features like splendid graphics, special integrated stereo with USB and speakers, luxurious leather seats, cushions, foot-mats and artistic decal on the exteriors.

The limited edition celebrates Maruti Suzuki`s (Q,N,C,F)* landmark of selling one million cars a year, achieved in late March. The one millionth car was a Swift and it rolled out of the company`s plant at Manesar.

Maruti Suzuki had outperformed the market over the past one month till Aug. 31, 2010, rising 4.82% compared with the Sensex`s 0.58% rise. It underperformed the market in past one quarter, gaining 1.53% as against 6.06% rise in the Sensex.

Shares of the company gained Rs 17.35, or 1.38%, to settle at Rs 1,273.25. The total volume of shares traded was 132,343 at the BSE (Wednesday).

Maruti Suzuki launches limited edition of Swift is a post from: Indian Stock Market Tips

Markets up 0.7%; banks, autos rise

admin — Wed, 01 Sep 2010 12:20:22 +0000

Indian Stock Market were trading 0.7% higher on Wednesday, helped by gains in Asian markets, with financials leading the rise.

Financials marched ahead on expectations of better loan demand as the world’s second-fastest growing major economy expands further.

Data on Tuesday showed India’s economy grew at its fastest pace in nearly three years in the April-June quarter on strong manufacturing growth and better farm output.

By 10:43am, the 30-share BSE Index was trading up 0.68% at 18,092.62 points, with 26 of its components gaining.

“Our market is up tracking world markets and also the robust domestic consumption makes it lucrative,” said Gajendra Nagpal, CEO of Unicon Financial, referring to strong auto sales numbers.

“A correction from here is not ruled out as we have outperformed other markets. But, that should be looked as an opportunity to buy.”

The benchmark index is up 3.6% in 2010, boosted by foreign fund inflows of $12.8 billion in Indian equities.

Top lender State Bank of India firmed 0.6% and leading private lenders ICICI Bank and HDFC Bank rose 1.2% and 0.8% respectively. Mortgage lender Housing Development Finance Corp climbed 0.5%.

Energy giant Reliance Industries, which has the highest weight on the Sensex, rebounded 1% after sliding more than 3% in the previous session on EIH stake buy.

Top mobile operator Bharti Airtel rose 2.1% ahead of its annual shareholders meet in the day.

Top car maker Maruti Suzuki raced 1.4% after it said its August vehicle sales rose 24%. Other automobile companies gained on expectations of robust sales numbers for August. Tata Motors and Mahindra and Mahindra were up 0.5% and 1.2% respectively. Hero Honda bucked the trend and slipped 0.7%.

Kingfisher Airlines was up 2.4% after the carrier’s board approved raising up to $1 billion through various means including rights issue, preferential issue or global depositary receipts.

In the broader market, gainers were nearly four times the losers, while 107 million shares changed hands on the BSE.

The 50-share NSE index was up 0.6% at 5,437 points.

Asian stocks rose as investors cheered a manufacturing rebound in China and stronger-than-expected growth in Australia, with the MSCI index of Asia Pacific stocks outside Japan 1.5%.

STOCKS

Metal producers such as Tata Steel, Hindalco and Sterlite Industries rose between 1.2% and 2.4% as base metal prices rallied in Shanghai.

Sun Pharmaceutical slipped 0.7% to Rs1,748 after the drugmaker late Tuesday said US FDA has warned its US unit about manufacturing problems uncovered at a plant in New Jersey.

TVS Motor was up 2.2% at Rs145.15, as the vehicle maker said its August sakes were up 34% on year.

Markets up 0.7%; banks, autos rise is a post from: Indian Stock Market Tips

Nifty holds on to 5,400; RIL slumps 3%

admin — Tue, 31 Aug 2010 11:35:00 +0000

The Dalal Street made a spectacular recovery in the last hour of trade that erased most of its losses on a day of swinging fortunes. At close, the BSE Sensex stood at 17,971, down 61 points and the Nifty managed to hold on to the 5,400 level despite losing 13 points.

The markets opened lower on the back of weak global stocks. The benchmark indices tracked Asian stocks and trended lower until hitting an intraday low of 17,819 post noon. However, a last hour of recovery trade saw the benchmark indices recoup almost 150 points from the day’s low.

The government said that the country’s GDP in the first quarter grew at 8.8 per cent – the fastest in over two years- but that failed to lift market sentiments.

One of the biggest factors for the steep decline in the benchmark indices was RIL. The Index heavyweight fell 3.05 per cent to 918.85 and cost the Sensex 66 points. On Monday, the company had announced a deal to buy 14 per cent stake in East India Hotels – owners of the Oberoi brand. However, the deal did not go down well with the investors. RIL dragged the oil and metals index down 1.95 per cent lower. EIH limited could not sustain gains and fell 7.13 per cent.

High beta stocks fell. Metals, that outperformed the markets on Monday, fell 1 per cent led by Jindal Steel that closed 2.11 per cent down. Realty stocks declined 1.71 per cent. DLF fell 1.82 per cent.

FMCG and auto stocks were the big gainers. M&M gained 2.85 per cent and was the top gainer on the Sensex. ITC rose 2.10 per cent and Maruti Suzuki advanced 1.68 per cent.

ICICI Bank, Wipro, Infosys – all surged in the last hour of trade to close in the green.

10 stocks advanced and 20 declined on the BSE. ITC was the biggest contributor to the Sensex adding 23 points. ICICI Bank added 13 points. Reliance Comm was the biggest loser on the Sensex dropping 3.61 per cent.

The broader markets fell. Small cap stocks declined 1 per cent and the CNX midcap index fell 0.66 per cent. Jet Airways fell 5.25 per cent, REI Agro dropped 4.05 per cent and Lanco Infra declined 3.78 per cent. Only 30 per cent stocks managed to advance on the BSE.

Hotel stocks gained. EIH Associated rose 19.98 per cent. Royal Orchid gained 4.25 per cent.

Asian stocks fell today led by the Japanese Nikkei that slumped 3.55 per cent. An appreciating Yen hurt export stocks and the latest move by the Bank of Japan to ease its monetary policy has not gone down well with investors. The Nikkei fell 325 points to 8,824. South Korea’s Kopsi declined 0.99 per cent. The Hang Seng fell 0.97 per cent and the Shanghai Composite in China declined 0.52 per cent.

The European stocks were trading lower. The CAC 40 in France fell 0.98 per cent, Germany’s DAX declined 0.74 per cent and Britain’s FTSE fell 0.91 per cent at 4.20 pm.

Overnight, the Wall Street dropped 140 points to 10,009 despite reports indicating that personal incomes rose marginally. Volume on the Wall Street remained thin as investors were cautious about the economic recovery and high unemployment.

Trading in Dow futures indicated that the Wall Street might open lower for a second session later today. The Dow futures were down 33 points to 9,946.

Nifty holds on to 5,400; RIL slumps 3% is a post from: Indian Stock Market Tips

Hospitality major East India Hotels (EIH) soars 20 per cent

admin — Tue, 31 Aug 2010 07:30:43 +0000

Hospitality major East India Hotels (EIH) today soared 20 per cent on its’ stake sale deal with Mukesh Ambani – led RIL, extending its gains for the second consecutive session. RIL itself was down over 1 per cent on BSE in the early trade. EIH, which gained 11 per cent yesterday, started the day with a jump of 19.97 per cent, the maximum permissible one-day gain on the Bombay Stock Exchange, to Rs 180.80. The scrip was trading at Rs 161.95, up 7.47 per cent in the morning trade.

Shares of EIH saw a similar rise on National Stock Exchange and zoomed 20.01 per cent to a year high of Rs 181.10. However, shares of Reliance Industries (RIL) failed to cheer the deal and plunged 2.26 per cent to hit a month low of Rs 926.25, a day after the company bought a 14.2 per cent stake in EIH.

Yesterday, RIL had joined hands with promoters of the Oberoi group to thwart a possible takeover of EIH by key rivals ITC, by buying 14.12 per cent stake at Rs 1,021 crore in the company that runs the Oberoi brand of hotels and resorts. The stake purchase from Oberoi Hotels Private Limited and other promoters of EIH Limited was made through RIL’s wholly-owned subsidiary, Reliance Industries Investment and Holding Private Limited.

ITC Ltd, which has 14.98 per cent in EIH Ltd rose 1.63 per cent to Rs 161.90 in the start of the trade. Meanwhile, the 30-share benchmark sensex was trading weak at 17,927.43, down 0.53 per cent from the previous close.

Hospitality major East India Hotels (EIH) soars 20 per cent is a post from: Indian Stock Market Tips