Price fall, better connectivity seen on amended Land Act

Experts in the infrastructure space are hailing the government's move to approve the ordinance route for Land Acquisition Bill. The benefits of the amended Land Acquisition Bill, experts say will range from improved infrastructural connectivity and a fall in realty prices. 

In an interview to CNBC-TV18, Rajeev Talwar , Group ED, DLF; Niranjan Hiranandani, Managing Director, Hiranandani Group; Madan Sabnavis, Chief Economist, CARE Ratings and K Venkatesh, CMD, L&T Infrastructure Development share their views over the development.

Below is the verbatim transcript of the interview with CNBC-TV18's Nayantara Rai and Surabhi Upadhyay.

Surabhi: The niggling sticky point and one of the biggest criticisms of the Land Act was the amount of money that has to be paid to acquire land and the government is very clear there is absolutely no touching the compensation clause. It is going to be four times market value for rural areas and twice in urban areas including in affordable housing, including in some of these exempted areas that we just spoke of. How would you react to that? Will it be conducive to really then kick-start affordable housing in a real way?

Hiranandani: It is very clear that the compensation which is going to go to the farmer is going to be high. In certain areas it is not going to be possible to make affordable housing because the land prices and acquisition prices would be higher but then obviously what the government intends is to acquire those areas where the land prices are not higher and they will create new infrastructure to develop new extensive areas. So what they will look at is probably faraway places, locations elsewhere, build new infrastructure, build the metro, build the connectivity, get land and do it but they don't want to deprive the farmers of this compensation.

Surabhi: I understand that but then my corollary to that would be then would developers like yourselves or Mr Talwar in DLF etc large real estate companies in the country that have so far not really seen affordable housing as a big chunk of the business, not as a mainstay of the business. Will that mindset at all change if this land is going to be in far flung areas in order to keep costs in check?

Hiranandani: No, I don't see that as a problem at all. We have always gone to faraway places and once you create it infrastructure becomes nearby. So, development is going to be more spread out than has been done in the past and this is essential which we think that they are going to only develop in the congested areas, it is not going to be possible and if you see the corollary look at it, they are talking about smart cities, they are talking about new areas.

You may not have development in the cities or in the immediate peripheral but, if you take Mumbai you have the entire MMR region right up to Pune, you have the Alibaug area, Panvel area, the Vasai-Virar area and similarly you have Noida and other areas which you have around Delhi.

So, I don't see that as a real problem but the issue is this government is clear. You don't want to deprive compensation. So I don't see that as a problem. It is a political necessity for the government to do. We have to build it around it, we can criticize it but I don't see anything wrong.

Surabhi: What is it that is required to really get this housing PPP model really kick off on the ground in a big way?

Talwar: The provisions would be more applicable to areas like industrial corridors and to new cities being developed, but you would be surprised. Mr Hiranandani is absolutely correct that it was really the time taken which was of critical concern to all of us. You cannot have a project wait for five years for land acquisition alone. It was never the compensation, you would be surprised that way back in 2006, 2007 and 2008 the kind of compensation which was offered for new subsidies to be developed either in Karnataka or even in West Bengal or for that matter in Maharashtra was more than 50 lakh per acre. So that is something in rural areas which was being done even earlier. It is not the price which is really going to make a huge impact but it is the time saved which will make a bigger impact.

Surabhi: What is it that is required to really get this housing PPP model really kick off on the ground in a big way?

Talwar: The provisions would be more applicable to areas like industrial corridors and to new cities being developed, but you would be surprised. Mr Hiranandani is absolutely correct that it was really the time taken which was of critical concern to all of us. You cannot have a project wait for five years for land acquisition alone. It was never the compensation, you would be surprised that way back in 2006, 2007 and 2008 the kind of compensation which was offered for new subsidies to be developed either in Karnataka or even in West Bengal or for that matter in Maharashtra was more than 50 lakh per acre. So that is something in rural areas which was being done even earlier. It is not the price which is really going to make a huge impact but it is the time saved which will make a bigger impact.

Nayantara: But once the land acquisition had been approved by the parliament in 2013 we had you, Mr Hiranandani, various real estate companies and expert coming out and saying that the days of the large integrated townships are over, that this land acquisition act will make it impossible. So whatever, land you have now is literally gold, it is worth platinum. Do you think the new ordinance that has been proposed will change that, can companies like you again think of having new integrated townships going out there to acquire land not just for affordable housing?

Talwar: That is going to be taken care of with the Floor Space Index (FSI) declaration and with cities going vertical we will have to do with much larger amount of housing in much smaller land parcels and perhaps the new cities which come along will use land much more efficiently. We will have much better systems and hopefully as has been announced by the government these will be smarter cities.

Nayantara: What every consumer wants to know, will we see property prices come down?

Talwar: They have already come down. Last six years have seen a appreciable moderation of prices. If supply increases I am sure prices of housing can be kept very well affordable depending on the ultimate price also of what is described as affordable housing. I do not think housing for middle class and for even others should be either very small or should be kept restricted to only about 500 square feet.

Nayantara: The finance minister has also spoken about reviving exemptions for projects under national security and defence. Your reaction to that and also let us not forget very recently we have also seen the FDI regime being changed for defence. How is all of this going to play out and the fact that it all has to be PPP?

Sabnavis: The way I look at it is that there are two parts to this particular thing on land acquisition. What the finance minister seems to have addressed today is more on the infrastructure side where there is no ambiguity in terms of which are the sectors which are going to be exempted. As far as industry is concerned the same provision is there (Not Sure) in terms of compensation and I think that was a big deterrent earlier in terms of what the compensation should be paid to the farmers.

While moralistically speaking that was the right thing but from the commercial point of view it would still be a challenge. I don't think it is going to change anything for companies who are going to try and acquire land for the sake of putting up their own plant. Definitely from the point of view of infrastructure if you combine this with also what has been done on the FDI side, I think there will be a boost.

Surabhi: It probably sounds quite for affordable housing. We have been getting a view the real estate sector. However if you move beyond that they have taken as part of the 5 exempted areas apart from national security there is industrial corridors and there is rural infrastructure. However it doesn't seem to be very clear about other large scale private sector projects that would be coming in, they will still have to go through the compensation which has been earmarked earlier, they will have to go through the social impact report, they will have to go through the 80 percent consent clause. So, do you really see this in a decisive way shifting sentiment in terms of manufacturing?

Sabnavis: No, I think it is only doing it partly. As far as manufacturing as you were mentioning about the large companies, debt levels are going to remain the same. So, I don't think anything changes out there. The only way in which the overall sentiment improves is we are saying that something else is going to happen where the government is involved, where there is infrastructure involved. Talking of rural infrastructure, industrial corridors, I think all that is very good.

23.07 | 0 komentar | Read More

Buy Prakash Steelage; target of Rs 135: Firstcall Research

Brokerage house Firstcall Research is bullish on Prakash Steelage and has recommended buy rating on the stock with a target price of Rs 135 in its research report dated December 20, 2014.

Firstcall Research report on Prakash Steelage

"Prakash Steelage's net profit jumps to Rs. 86.58 million against Rs. 55.01 million in the corresponding quarter ending of previous year, an increase of 57.39%. Revenue for the quarter rose by 23.95% to Rs. 2512.81 million from Rs. 2027.27 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs. 4.95 a share during the quarter as against Rs. 3.14 over previous year period. Profit before interest, depreciation and tax is Rs. 251.21 million as against Rs. 180.11 million in the corresponding period of the previous year."

OUTLOOK AND CONCLUSION

At the current market price of Rs. 120.00, the stock P/E ratio is at 8.55 x FY15E and 6.72 x FY16E respectively.

Earnings per share (EPS) of the company for the earnings for FY15E and FY16E are seen at Rs. 14.03 and Rs. 17.87 respectively.

Net Sales and PAT of the company are expected to grow at a CAGR of 16% and 31% over 2013 to 2016E respectively.

On the basis of EV/EBITDA, the stock trades at 5.22 x for FY15E and 4.69 x for FY16E.

Price to Book Value of the stock is expected to be at 1.03 x and 0.89 x respectively for FY15E and FY16E.

"We recommend 'BUY' in this particular scrip with a target price of Rs 135 for Medium to Long term investment", says Firstcall Research Report.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

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RINL gets Sebi's nod for IPO

State-run Rashtriya Ispat Nigam Ltd (RINL) has received market regulator Sebi's approval to raise funds through an initial public offer (IPO).

The steel maker had filed its draft papers with the Securities and Exchange Board of India (Sebi) for the proposed public offer in September.

Sebi issued its final 'observations' on the draft red-herring prospectus (DRHP) documents on December 22, according to the latest update by the capital markets
regulator.

Issuance of 'observations' on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like IPOs, FPOs and rights issue.

Under the proposed IPO, the government would offload 48,89,84,620 shares through an offer for sale, of which 35 percent will be reserved for retail investors and 50 per cent for qualified institutional buyers.

A discount of up to five per cent on the offer price shall be offered to retail investors.

As per the DRHP filed with Sebi, the government will sell 10 per cent of its stake in the company and the entire proceeds through the issue would go the exchequer.

The IPO of state-owned steel maker RINL is scheduled to hit the markets in the current fiscal (2014-15), and the Cabinet has already given its approval for the stake sale.

The issue will be managed by UBS Securities India Pvt Ltd and Deutsche Equities (India) Pvt Ltd.

Last week, officials had said that as RINL was still assessing damage caused by recent Hudhud cyclone to its plant at Visakhapatnam, the government has decided to defer IPO.

"The new timeline for the IPO of RINL would be drawn up after the company ascertains the damage," an official had said.

The 10 per cent government stake sale through IPO is now likely to take place sometime in the next financial year, the official added.

Cyclone Hudhud hit Andhra Pradesh on October 12, forcing RINL to stop production at its lone facility at Visakhapatnam due to failure of power supply.

According to estimates, its impact on state-run steel maker RINL's profitability was about Rs 350 crore.

23.07 | 0 komentar | Read More

Market strategy for 2015: ICICIdirect

ICICIdirect.com: Market Strategy 2015

Equity markets, having appreciated 29% this year, have been running ahead of an economic recovery, which is expected to follow with a lag. The government has already initiated several confidence building measures and taken key decisions like allowing FDI in several sectors, railway fare hike, online environment & forest clearance, etc. However, an economic recovery is expected only at a gradual pace. After trading around 14x one year forward EPS for most of the last five years, the Sensex is now trading at 14.6x one year forward EPS (FY16E).

We have already witnessed a bottoming out of the economic growth cycle, which coupled with a reduction in crude and other commodity prices has aided lower inflation. This has also led to hopes of a rate cut in the first half of next year. India is entering a new phase of economic growth that would be characterised by a multi-year bull run. In this backdrop, we expect four major themes to play out, which will last for the foreseeable future.

Sensex target: Factoring in the fall in inflation, comfortable CAD, improved sentiments and pick-up in GDP growth, we expect the Sensex EPS to grow at a CAGR of 17% over FY14-17E. A decline in cost of equity coupled with a dovish environment will further fuel portfolio flows for India in equities as well as debt instruments. The Sensex is trading at 15x one year forward P/E multiple (FY16E), in line with historical mean. However given the resurrection of corporate earnings cycle, we believe there exists a case for a re-rating of the Indian markets. We assign a P/E multiple of 15x on FY17E EPS to arrive at a fair value of 32500 by end CY15, implying an upside of 18.5%. The corresponding Nifty target would be 9750.

Since we expect the economy and corporate profitability to make a meaningful comeback thereby making cyclical sectors the biggest beneficiary as pick up in utilisation rates, positive operating and financial leverage will lead to recovery in profitability and improve the quality of the balance sheet. Hence we are positive on sectors like banking (pick-up in loans, lower interest to cushion NIMs, lower bond yields to aid provisioning and NPA cycle peaking), cement (increase in capacity utilisation and lower input costs to aid profitability), capital goods (revival in capex cycle to lead to better orders and execution), autos & auto ancillaries (lower rates to boost pent up demand and lower commodity to help margin recovery)

We are neutral on defensives like  IT (demand intact, rich valuation), pharma (rich valuation, tepid domestic growth), oil & gas (earnings dependent on deregulation, limited volume growth) & media (earnings visibility intact, rich valuation)

We remain negative on sectors like real estate (high inventory and huge debt pile up and regulatory hurdles to weigh over positive like lower interest rates and pick up in demand), Metals( Lower realisations and levered balance sheets) and shipping ( Highly dependent on global trade and demand for commodities).

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

23.07 | 0 komentar | Read More

Here's how PE sector performed in 2014

Thanks to billion dollar investments in India's ecommerce sector, the private equity investments rocketed in 2014. The outlook for 2015, however, doesn't seem as clear with experts divided over whether PE investments will find lucrative exits in the Indian market.

Thanks to billion dollar investments in India's ecommerce sector, the private equity investments rocketed in 2014. The outlook for 2015, however, doesn't seem as clear with experts divided over whether PE investments will find lucrative exits in the Indian market. 

23.07 | 0 komentar | Read More

Cabinet clears hiking stake in IFCI to 51%

Government Monday approved raising its stake in IFCI Ltd to 51 percent by infusing Rs 60 crore in the country's oldest financial institution.

Government Monday approved raising its stake in  IFCI Ltd to 51 percent by infusing Rs 60 crore in the country's oldest financial institution.

"The Union Cabinet chaired by Prime Minister, Narendra Modi, approved infusion of Rs 60 crore in Industrial Finance Corporation of India (IFCI) Ltd to make it a government company by way of acquisition of preference shares from existing shareholder(s)," an official statement said.

IFCI was set up in 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation
(Transfer of Undertaking and Repeal) Act, 1993 and IFCI Ltd was registered under the Companies Act, 1956 on March 31, 1993, it said.

The current shareholding of Government of India in IFCI after inclusion of the preference share capital was 47.93 percent, it said.

Therefore, IFCI is not a Government Company under section 2(45) of the Companies Act, 2013.

A contribution of Rs 60 crore to the capital of the company would raise the shareholding of the Government to 51 percent.

The Finance Ministry had sought the Cabinet approval to hike its stake in the IFCI to 51 percent by pumping in Rs 60 crore, and make it a 'government company'.

IFCI's total paid-up capital of about Rs 1,925 crore comprised Rs 1,662 crore as equity capital and nearly Rs 264 crore as preference share capital.

IFCI stock price

On December 29, 2014, IFCI closed at Rs 37.70, up Rs 1.60, or 4.43 percent. The 52-week high of the share was Rs 44.90 and the 52-week low was Rs 21.80.

The company's trailing 12-month (TTM) EPS was at Rs 3.50 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 10.77. The latest book value of the company is Rs 40.42 per share. At current value, the price-to-book value of the company is 0.93.

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IVRCL hopes to cut debt by Rs 2500cr via asset sale by Mar

The company has put up as many as seven road projects under BOT basis and a desalination plant in Chennai for sale. IVRCL has entered into a binding agreement with Dubai-based Utico FTZ to sell its equity in the desalination plant.

Infrastructure company  IVRCL today said it expects to reduce debt burden by Rs 2,500 crore before the end of current fiscal by selling some projects.

The company may post marginal profits from the next fiscal, IVRCL Chairman and Managing Director E Sudhir Reddy said, adding that the accumulated losses of the company currently stood at Rs 800 crore and has a debt of Rs 6,500 crore on consolidated basis.

The company has put up as many as seven road projects under BOT basis and a desalination plant in Chennai for sale. IVRCL has entered into a binding agreement with Dubai-based Utico FTZ to sell its equity in the desalination plant.

Earlier, the company was in discussions with Tata Group firm TRIL Roads Pvt Ltd to offload three road projects. However, no binding term sheet has been signed by both parties, Reddy said.

"With the sale of three road projects and the Chennai desalination plant we expect to get Rs 600 crore to Rs 800 crore equity into the company and reduce debt by Rs 2,500 crore.

"After completion of sale of all the projects (seven road projects and the Chennai plant) we get about Rs 1,500 crore equity, and cut Rs 3,500 to 4,000 crore debt from the books," Reddy told reporters.

IVRCL has 1,700 acres of real estate worth Rs 3,000 crore (at current market prices) across the country, he said.

On the company's financials, Reddy said they hope to touch Rs 8,000 crore revenue mark in the next two years. "Next year we expect revenue to be Rs 6,000 to Rs 6,500 crore."

Reddy said shareholders have given their nod to raise Rs 300 crore by way of QIP and the company may go for it in a year. "In the next one year we are looking at going for QIP and before that we may do little bit of preferential allotment
also."

According to him, the company's total order-book is pegged at Rs 18,000 crore. Of this, up to 58 per cent is water-related projects.

He said the promoters have plans to increase their shareholding in the company and may do so in two or three tranches.

IVRCL stock price

On December 29, 2014, IVRCL closed at Rs 16.00, up Rs 0.55, or 3.56 percent. The 52-week high of the share was Rs 30.75 and the 52-week low was Rs 9.80.

The latest book value of the company is Rs 37.17 per share. At current value, the price-to-book value of the company was 0.43.

23.07 | 0 komentar | Read More

IRDA panel to look into health products, other issues

The committee, chaired by IRDA member M Ramaprasad, is expected to finalise its report with recommendations within two months.

Insurance sector regulator Irda has constituted a committee to address a host of issues related to health insurance segment.

"A need has been felt to visit/re-visit various areas in the framework applicable for health insurance to ensure level playing field for the industry as well as rationalise various provisions," the Insurance Regulatory and Development Authority (Irda) said Monday.

"The committee shall examine the existing framework for regulating health insurance business on various relevant areas," it said.

Among others, the terms of reference of the 11-member committee will include health insurance product distribution, reinsurance in health sector, place of health in rural and social sector obligations, mergers and acquisitions, solvency approaches, actuarial matters, investment and financial matters and regulatory aspects.

The committee, chaired by IRDA member M Ramaprasad, is expected to finalise its report with recommendations within two months.

Health insurance, a business interest for both life and non-life insurance companies apart from stand-alone companies, is one of the fastest growing segment in last few years with premium of nearly Rs 17,500 crore as on March 2014.

The first stand-alone health insurance company was established in 2006. Presently there are five such companies in the country.

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RBI eases norms for Indian companies investing abroad

In addition to joint ventures (JVs) and Wholly Owned Subsidiaries (WOSs), the RBI has announced similar concession for pledging of shares in case of step down subsidiary.

Encouraged by comfortable forex reserves, Reserve Bank today relaxed the norms for Indian companies investing abroad by doing away with the ceiling for raising funds through pledge of shares, domestic and overseas assets.

"It has been decided that banks may permit creation of charge pledge on the shares of the JV/WOS... (irrespective of the level) of an Indian party in favour of a domestic or overseas lender for securing the funded or non-funded facility...under the automatic route," RBI notification said while modifying the Overseas Direct Investments norms.

Earlier, the fund raising for the purpose of overseas investment by Indian companies were subject to various limitations.

In addition to joint ventures (JVs) and Wholly Owned Subsidiaries (WOSs), the RBI has announced similar concession for pledging of shares in case of step down subsidiary.

"The matter relating to the setting up or acquiring the multi-layered structure of overseas entities by the Indian party, wherever applicable, is under the examination of the Reserve Bank and the decision taken in this regard will be conveyed in due course for necessary compliance at Indian party level," it said.

India's foreign exchange reserves in the week to December 19 surged by a whopping USD 3.163 billion to USD 319.997 billion on the back of a massive jump in foreign currency assets.

Last week, reserves had increased by USD 2.172 billion to USD 316.833 billion, RBI data showed.

In the week to July 25, 2014, the reserves had touched USD 320.56 billion, an inch away from the life-time high of USD 320.79 billion on September 2, 2011.

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Infra projects worth Rs 6K cr commissioned in 2014: MMRDA

Mumbai Metropolitan Region Development Authority (MMRDA), which is the nodal body for planning and implementation of projects, delivered infrastructure projects worth Rs 5,955 crore, a release issued here said.

The Maharashtra government has commissioned infrastructure projects worth around Rs 6,000 crore in Mumbai alone in 2014.

Mumbai Metropolitan Region Development Authority (MMRDA), which is the nodal body for planning and implementation of projects, delivered infrastructure projects worth Rs 5,955 crore, a release issued here said.

Among the key projects commissioned during the year include the country's first Rs 1,200 crore worth 8.93 km Chembur-Wadala monorail and Versova-Andheri-Ghatkopar metro rail project costing Rs 2,365 crore.

The other vital infrastructure projects delivered during the year included 17-km Eastern Freeway built at a cost of Rs 1,463.87 crore; 3.5 km Santacruz-Chembur link road worth Rs 428 crore; 1,096-meter long flyover worth Rs 76 crore at Amar Mahal junction; 2 km Sahar elevated road worth Rs 400 crore and south-bound arm of Kherwadi flyover worth Rs 21.96 crore.

MMRDA has also approved projects to the tune of Rs 69,425 crore to ramp up infrastructure of the country's financial capital in near future.

These projects include 33.5 km Colaba-Bandra-Seepz underground metro corridor project worth Rs 24,340 crore, 40 km-long Dahisar-Charkop-Bandra-Mankhurd metro corridor at an estimated cost of Rs 25,605 crore and 32 km-long Wadala-Ghatkopar-Thane-Kasarvadavali metro corridor requiring an expenditure of Rs 19,097 crore.

MMRDA has also approved four flyovers at Bandra-Kurla junction and a 1.6 km connector between Bandra-Kurla complex and Eastern Express Highway near Chunabhatti with a cost of Rs 227 crore and Rs 156 crore, respectively, to ease traffic in Bandra-Kurla Complex.

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A voice forum for citizen journalism in rural India

Rural communities in India are often underserved by the mainstream media. While there is a public discourse surrounding the issues they face, this dialogue typically takes place on television, in newspaper editorials, and on the Internet

-- Rural communities in India are often underserved by the mainstream media. While there is a public discourse surrounding the issues they face, this dialogue typically takes place on television, in newspaper editorials, and on the Internet.

-- This article examines an effort to foster a more inclusive dialogue by means of a simple technology: an interactive voice forum called CGNet Swara.

To read the full report click here

23.08 | 0 komentar | Read More

Special court verdict in Satyam case likely on Dec 23

Days after Satyam founder B Ramalinga Raju was convicted in SFIO cases, a special court here is expected to pronounce its verdict on Tuesday in the multi-crore accounting fraud in the erstwhile Satyam Computer Services Limited (SCSL), capping a nearly six-year trial.

Satyam's former chairman Raju, along with his brother and Satyam's former MD B Rama Raju, its former chief financial officer Vadlamani Srinivas and former director Ram Mynampati were given six months' jail term and fines on December 8, by a Special Court for Economic Offences in connection with complaints filed by Serious Fraud Investigation Office (SFIO).

The court order was subsequently suspended to enable the accused to file appeals.

SFIO, the investigation arm of Union Corporate Affairs Ministry, had filed seven complaints against SCSL and its directors for violations of the Companies Act in the Special Court for Economic Offences here in December 2009.

On October 30, Special judge BVLN Chakravarthi, of the Special Court trying the case, (probed by the Central Bureau of Investigation) pertaining to the multi-crore rupee scam in SCSL, fixed December 23 for pronouncement of the much-awaited judgement.

CBI's special Public Prosecutor K Surender had then said, "The case is posted for judgement on December 23. In all probability, it (verdict) will be delivered on that date, failing which, because of the volume of the case, it might take a few days more if at all."

Raju and other accused are scheduled to appear before a local court on Monday in connection with complaints filed by market regulator Securities and Exchange Board of India (SEBI).

Apart from Raju, Rama Raju, the other accused in the case are Vadlamani Srinivas, former Pricewaterhouse Coopers auditors Subramani Gopalakrishnan and T Srinivas, Raju's another brother B Suryanarayana Raju, former employees G Ramakrishna, D Venkatpathi Raju and Ch Srisailam, and Satyam's former internal chief auditor V S Prabhakar Gupta.

Touted as the country's biggest accounting fraud, the scam came to light on January 7, 2009, after Ramalinga Raju allegedly confessed to manipulating his company's account books and inflating profits over many years to the tune of several crores of rupees.

Raju was arrested by the Crime Investigation Department of Andhra Pradesh Police two days later along with his brother Rama Raju and others.

Raju and others were charged with offences like cheating, criminal conspiracy, forgery and breach of trust under relevant sections of IPC for inflating invoices and incomes, account falsification, faking fixed deposits, besides allegedly falsifying returns through violation of various Income Tax laws.

In February that year, the CBI took over investigation and filed three charge sheets (on April 7, 2009, November 24, 2009 and January 7, 2010), which were later clubbed into one.

Around 3,000 documents were marked and 226 witnesses were examined. Raju later retracted his confession statement and contended that all charges levelled by the CBI were false.

During the trial, the CBI alleged that the scam caused a loss of Rs 14,000 crore to Satyam shareholders, while the defence countered the charges saying the accused were not responsible for the fraud and all the documents filed by the central agency relating to the case were fabricated and not according to law.

At present, all the accused are out on bail, though the Enforcement Directorate has also filed a charge sheet against them under the Prevention of Money Laundering Act.

In January this year, Ramalinga Raju's wife Nandini Raju and sons Teja Raju and Rama Raju were among 21 relatives of the ex-Satyam boss, who were convicted by an economic offences court here on Thursday for default in payment of Income-Tax.

Satyam Computer Services Ltd had later merged with Tech Mahindra.

23.08 | 0 komentar | Read More

Why 'Make in India' funds may not make you too much money

Moneycontrol Bureau

While the Narendra Modi government's push to incentivize manufacturing in the country -- with its Make in India initiative -- is yet to roll out in any meaningful manner and show its benefit, one industry is already reaping its dividend: the mutual fund business.

According to an article in the Economic Times, three asset management companies have launched or are in the process of launching schemes that are expected to benefit from the proposed initiative.

In short, these schemes will own shares in firms that are expected to gain when the results of Modi's effort start kicking in – say over the course of the next two-three years. These should likely be in the capital goods, engineering and auto space, among others.

But while 'Make in India' may be a good way to provide a fillip to the Indian economy, here's why 'Make in India' funds may not be such a good idea to boost your portfolio's returns.

One, thematic funds are inherently highly-risky. By virtue of their nature, they invest in select sectors and their fortunes become intertwined with those.

Furthermore, sectors associated with a theme such as 'Make in India' are highly cyclical themselves, and it is difficult to tell whether or how soon any benefits to push manufacturing will start to accrue benefits in the form of earnings.

While it is conceivable that increasing enthusiasm over manufacturing stocks -- if a long-term bull market gets under way -- could result in outsized gains for them, if the theme fails to take off or the market cycle turns, it could result in a damp squib.

Case in point being the slew of infrastructure/real estate focused schemes launched prior to 2008 when such stocks had caught investors' fancy. After all these years, compared to diversified equity funds, the performance of infra-focused schemes has been nothing worth writing home about.

As Niranjan Risbood, director of research at Morningstar India told ET, thematic funds can at best find a tactical place in (or be a small part of) an investor's portfolio – what financial advisors term satellite holdings, which may or may not boost overall returns of core holdings (diversified funds) but whose non-performance will not affect the portfolio in a big way.

The second problem with thematic funds is that they suffer from the curse of the market cycle. By design, such schemes are launched -- primarily because they find takers only then – either in the midst of a bull market (when sizeable gains have already been made) or near the top (such as was the case with the launch of infra funds in late 2007-early 2008).

So while such funds make money for asset management companies by way of having more funds to manage, they may not necessarily lead to higher returns for investors over the long run.

Another argument that goes against such funds is that: in the absence of a past track record, it is difficult to judge how well its fund manager can execute the strategy she has planned.

For, having a sound strategy is one thing and executing it well is another. As the wide difference in performances of schemes pursuing a similar strategy (value investing, for instance) will tell you.

Finally, for such niche strategies, fund companies sometimes deploy some of their junior managers instead of their key ones – or even if they do, the senior managers often have too much on their plate (managing the funds' flagship schemes) to really do justice to such schemes.

Fund researchers believe a single fund manager should at the most manage six schemes so as to be able to adequately focus on all. During bull markets when fund houses are busy rolling one fund after another off the assembly line in order to garner the highest assets, workloads on managers can increase to unmanageable levels. As we saw prior to 2008, when many fund managers were managing as many as 10-15 schemes.

23.08 | 0 komentar | Read More

No respite for DLF: Sebi receives multiple complaints

Sebi in its arguments which started Monday before the SAT pointed out that it was not just one complaint but there were multiple complaints received from investors against DLF.

Market regulator Sebi began its arguments Monday before the Securities Appellate Tribunal (SAT) against DLF . Sebi disclosed that it has received not just one but multiple investor complaints against the realty giant.

Earlier, DLF had questioned the market regulator's order based on just one single complaint from Kimshuk Sinha.

Sebi in its arguments which started Monday before the SAT pointed out that it was not just one complaint but there were multiple complaints received from investors against DLF.

In fact Sebi was also not convinced that DLF was unaware of the FIR that has been registered against DLF and its subsidiaries at the time of filing for an IPO.

Sebi's lawyer also argued that there were about 336 companies that ceased to be associates of DLF at the time of filing prospectus before the scheduled IPO in the year 2007.

Shalika which was another arm of DLF is the best example of a shell company as the transactions between the three subsidiaries including Shalika, Sudipti and Felicite, was layered in such a manner that would not have been suspicious.

Now SAT has directed Sebi to share the correspondence between Sebi, merchant bankers and auditors. It has also directed Sebi to submit the files between the period when DLF had submitted a DRHP (draft red herring prospectus) and the revised DRHP.

Sebi will continue with its arguments tomorrow and that is when we will get to know on the entire basis of its argument today. It was just the first day of Sebi's arguments and the hearing will continue tomorrow as well.

23.08 | 0 komentar | Read More

How Prashant Jain's funds bounced back from a lukewarm 2013

Nazim Khan
moneycontrol.com

After a year's under-performance, funds managed by Prashant Jain, chief investment officer of the country's largest asset manager HDFC AMC, are back on top of the charts this year -- familiar territory for schemes that have been one of the greatest creators of investor wealth in the country over the past few decades.

Year to date, three of Jain's flagship funds, HDFC Top 200, HDFC Equity (both large-cap funds, but latter with a more pronounced midcap tilt) and HDFC Prudence (a balanced fund), have returned 44.98 percent, 52.41 percent and 50.19 percent.

The three funds have outpaced their respective benchmarks by 11.38 percent, 9.55 percent and 25.86 percent, respectively, according to Value Research data.

The knock-out performance by the ace fund manager comes a year after each of his three funds underperformed their respective benchmarks by a few percentage points in 2013 – in a sideways-to-uptrending market that proved to be a happy hunting ground for several other managers.

Jain who started his career in 1994 and has stayed with the same fund house since (even as his employer itself got acquired twice) has made a name for himself among investors and followers of the fund industry, thanks to his funds' long-term performance (20-22 percent over the past 10 years), as well for his soft-spoken demeanor and a calm-headed approach to investing that makes him place utmost importance on research, fundamentals and valuations.

Another aspect of the ace fund manager's investing approach is he keeps his emotions – of greed and fear that sway many a great investor – under impressive check and it is this trait that led him to stay away from the dotcom and real estate bubble of 2000 and 2007, risking underperformance while others continued to bask in the short term glory of hot stocks. But over the long term, he had always come out ahead.

Did Jain lose his touch, or investors their perspective?

So it was a bit surprising that, in the face of a year's underperformance, some investors last year were quick to start questioning whether the ace fund manager was "losing his touch".

Others wondered whether the fund manager was unable to recreate his magic because he now wielded a large portfolio, which was restricting his stock-picking abilities (the two flagship funds were and are the biggest in the industry and were then managing about Rs 20,000 crore in total) or whether he only had had a run of pure luck all along, which was now running out.

At heart was a broad call that Jain made on the country's economic recovery in 2013, in which he piled on to stocks he expected to benefit from the development, chiefly banks (such as SBI and ICICI Bank) and companies in the core sector (L&T, Tata Steel, Coal India, REC) – but a fall in the rupee put paid to his call.

Jain did what he does best when he conviction in his bets. He largely sat on the portfolio, in the belief that even as the timing of his call may have been early, his bet would pay off as the economy turns. Which it did.

His top stocks such as SBI and ICICI Bank rallied sharply this year, pushing his funds near the top of the heap.

Jain is known for batting for equities and often goes out to exhort investors to buy when there is gloom and doom all around and, with sage-like countenance, points out that is precisely the time of buy, such as when he did in May 2012 when the Sensex had dropped to 16,000. Like Warren Buffett, he often says markets are driven by sentiments in the short term, which can exploited to one's profit.

But what happened last year was a classic case of sentiment turning against Jain, when investors started overweighting recent underperformance and expecting them, like bad times, to last.

In a blog post earlier this year, fund analyst Vicky Mehta talks about how at a gathering in 2013, mutual fund distributors and advisors were complaining about the underperformance at the HDFC funds and how Jain was now "a spent force". In early 2014, as the performance turned around, "Jain and his funds were being eulogized by the same set of distributors, advisors and investors."

The HDFC twins (Top 200 and Equity) are among the only nine out of 87 Morningstar rates as a 'Gold', implying its highest conviction in the funds' ability to outperform peers over the long term.

Fact is, Jain follows a particular investment strategy, which may not pay off year after year or see the fund land in the top quartile performances every time.

At the same time, "the valuation consciousness and aversion to speculative fare could cause the fund to lag the competition in momentum-driven markets," writes Morningstar analyst Himanshu Srivastava in a research note on HDFC Top 200.

"But we continue to like the fund for the following reasons: an outstanding manager, a robust process and one of the best asset management companies," he adds.

Also read: HDFC MF's Prashant Jain on why retail investors always lose

23.08 | 0 komentar | Read More

IVR Junction: Building Scalable, Distributed Voice Forums

Interactive Voice Response (IVR) systems play an important role in collecting and disseminating information in developing regions

-- Interactive Voice Response (IVR) systems play an important role in collecting and disseminating information in developing regions.

-- This paper discusses the challenges and opportunities in creating scalable voice forums.

To read the full report click here

23.08 | 0 komentar | Read More

Eye more foreign flows; IPO by middle of next year: UTI AMC

In an exclusive conversation with CNBC-TV18's Latha Venkatesh, on special show Financial Advisor Awards, mutual fund industry veteran Leo Puri, MD, UTI Asset Management Company said the valuations in the MF industry seem quite fair at this point in time and one can see more global participation, both directly and in some cases through acquisitions in India in future.

Puri further said this this year, so far, has been the best for the AMC with very strong growth. However, it is still a feature of this market that the underlying momentum is foreign institutional investor (FII) driven, he added.

The company is likely to come up with an initial public offering (IPO) by the middle of next year as it is difficult this financial year given the paucity of time, added Puri.

Below is verbatim transcript of the interview:

Q: You have worn multiple hats but you have always been a watcher of the Indian financial sector. How does it feel as the head of one of the biggest mutual funds? Do you think normalcy has returned, has the investor returned for good?

A: It is clear that there is ebullience and optimism both domestically as well as in the international view on India. Some of this is obviously tinged with the degree of concern that we are yet to see, follow through action, implementation and while most people are taking the view that it is likely to follow, there is still an element of caution underlying the optimism because the evidence is yet to present itself.

Q: Do you also smell disconnect with earnings or macro data? Is that also a worry, are you fund managers worried about that?

A: No, we have been very fortunate as a country and the new government to that extent has a bit of luck riding its fortune as we have seen relatively benign global macro, we have seen commodity prices falling off. For a while, we did see gold drop off in terms of imports but that is reversing sign of a warning. Therefore, there is genuinely some margin expansion happening at this point in time, only sustainable if you get fundamental underlying reform to support it.

Q: What about interest in the M&A segment in the industry? We have one foreign buyer of one big mutual fund increasing his stake. Does it look like money is going to be made by the asset management side?

A: Yes, it is a clear vote of confidence in the medium to long-term outlook for the asset management industry. It is also a sign of, in particular Japanese interest in India at the moment and a sign for many Indian entrepreneurs who set up these companies, the time is right now to monetise and capitalise. So, what you had is a staggered sale that could lead to shared control if not transfer of control over time and it is a vote of confidence in the industry.

Q: What is your sense that in the fullness of time this kind of interest is retained, we could see more foreign interest and maybe at higher percent of assets under management (AUM)?

A: Yes, the valuation appears to be quite fair and full, so I don't know whether you will continue to see valuations getting stretched but interest absolutely. You will see the global fans participating more, both directly and in some cases through acquisitions in India.

Q: What about your own partners, have they asked you for more shares or are they likely to?

A: No comment. They are very happy with their 26 percent and continue to support us but I am sure with the current environment in India most foreign funds are going to review their strategies with a positive bias.

Q: Is the industry growing, AUMs growing with that kind of confidence? Are you seeing profits for the industry?

A: This year will certainly be the best by far for the industry. So absolutely, there is very strong growth. It is still a feature of this market that the underlying momentum is foreign institutional investor (FII) driven. That has its pluses and minuses but in a sense we are riding on those coattails at this point.

Q: One more bit about your AMC and your company and then I will come to the industry in greater detail. There was news that you have permission to do an IPO?

A: Well, it is our view as UTI and our board and trustees support that UTI's destiny is best served if we were to be an independent asset manager listed publically. This has three benefits in our view; one, it will actually unlock value for our existing shareholders which are banks primarily, financial institutions and they will make three and half or four times their money and that itself is a good thing to do.

Two, it will galvanise the capital market in India. We will bring in foreign direct investment (FDI), we will bring in retail investors and as a brand we have tremendous reach with retail in any case.

Three, it is a very strong statement in favour of economic reforms that here you have an institution that in its history ran into some trouble around US 64 was positively restored. In fact some Rs 60,000 crore of surplus was generated through the special undertaking of UTI for the government. Not a penny of government outgo if you like in that sense is now incurred and is then put back on its feet as a strong independent asset manager potentially to one day being alongside institutions like HDFC or ICICI or IDFC.

So it sends a very strong message of clear commitment to progress and economic reform which is much needed at this point.

Q: Certainly, but is it only the view of your board or do you also have the finance ministry backing, have you asked the finance ministry?

A: We of course, are required to take permission from the finance ministry and we are seeking their permission and are in a dialogue with them and we are hopeful that after the normal consultations we should receive the approval to go ahead.

Q: The talk of an IPO from the UTI coincided with the banks having to raise capital, they needed capital. Now that need continues, so do you think something can come even as early as this financial year?

A: We would be absolutely ready and strongly support it. In reality it takes about six months from a point of approval to actually get to market but from our perspective the sooner the better, we really see no reason at all why it shouldn't go ahead.

Q: How high are the chances that we should see it in the financial year?

A: Actually, difficult this financial year given the paucity of time but certainly by the middle of next year or around then is feasible.

23.08 | 0 komentar | Read More

Here are some commodity trading ideas from Kunal Shah

Watch the interview of Kunal Shah Kunal Shah, VP - Head of Commodities Nirmal Bang Commodities with Saurabhi Upadhaya on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

Watch the interview of Kunal Shah Kunal Shah, VP - Head of Commodities Nirmal Bang Commodities with Saurabhi Upadhaya on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

23.08 | 0 komentar | Read More

Nifty reclaims 8300; ends up 1.20% at 8324

CNBC-TV18's Nigel D'Souza wraps up the days market action.

CNBC-TV18's Nigel D'Souza wraps up the days market action.

23.08 | 0 komentar | Read More

Xmas, Good Governance 'Fringe Benefits'

Published on Mon, Dec 22,2014 | 20:52, Updated at Mon, Dec 22 at 20:52Source : Moneycontrol.com 

XMAS, GOOD GOVERNANCE & 'FRINGE BENEFITS'
By: Sudhir Kapadia, National Tax Leader, EY

X'mas eve is always a great time to take stock of the state of the nation in our chosen areas of interest, vocation or generally (or so I think). There is a certain good cheer in the air which is complemented by relatively pleasant weather (even if a shade foggy and polluted). As the winter session of Parliament nears its scheduled X'mas eve closure, Lutyen's Delhi leaves you with mixed feelings. The current business-like briskness, sheer dedication, grit and determination at the higher echelons of Government to "get things done" cannot be missed in the otherwise genteel and leafy surroundings of Lutyen's Delhi belonging to a much more fashionably royal era.

In every interaction with the senior members of the current Government, there is a palpable sense of urgency and earnestness to get to the "nuts and bolts" of implementation to ensure that the development agenda of the Government marches ahead. In evidence is also a refreshing willingness to acknowledge what is broken and needs repair. For instance, at a recent public event, the Revenue Secretary readily admitted that the Dispute Resolution Panel (DRP) mechanism is not effective and the Ministry of Finance has decided to appoint full time members to strengthen the DRP. We had earlier witnessed the alacrity with which the clarificatory circular on Special Economic Zones (SEZ) was amended to take into account some of the Industry's concerns. We recently saw an "Office memorandum" from the CBDT acknowledging that there is a perception of an adversarial tax regime which it seeks to address. Some of the guidance in the said Memorandum on evaluation of matters before filing appeals and exercising judiciousness in making adjustments to returned income is indeed like a breadth of fresh mountain air on the notoriously dusty plains.

There are other announcements like appointment of members to the High Powered Committee for interaction with Industry, additional Commissioner to augment capacity at APA, appointment of Committees at the CBDT and CBEC to examine and consider the recommendations of the Tax Administration Reforms Commission(TARC) which all put together clearly demonstrate an unmistakable bias towards action beyond just discussions. In this entire milieu, we also need to acknowledge and appreciate the tremendous personal sacrifices that the concerned Ministers and members of the Administration are making because of the punishing work schedule they are compelled to follow. It is the same intensity and "can do" attitude on display when it comes to legislation in Parliament. The much awaited and long overdue Goods and Services Act (GST) is a leading example of the action oriented mindset of this Government.

Therefore, is it time to raise a toast to "Happy New Year" and look forward to a scintillating 2015? Well,"picture abhi baki hai,mere dost!". Unlike the maiden session of Parliament of the new Government, we had a rather eventful second session. Suddenly the dull and boring rhythm of serious business in Parliament's first session was broken by a noisy second session replete with charges and counter charges threatening to derail the slew of critical legislation made ready by the Government.

It is evident that the "fringe" members of the Establishment and the "Nay sayers" in the combined Opposition have been having a field day under the winter sun of Lutyen's Delhi (and the artificially cold TV studios!). So what is the way forward, one might ask? At the risk of sounding flippant (though thats the intent anyway!),a compulsory (what else?)  viewing of the latest Aamir Khan starrer "PK" for all Parliamentarians on X'mas day should cool tempers down besides bringing some much needed humour back in Parliamentary debates and hopefully inspire everyone across the ideological spectrum  to deliver results to the hapless "Indiawallas"!

Here is wishing the benefits of better policies and still better implementation with good governance (but without any benefits from the "fringes"), good old X'mas festive cheer and a blockbuster "Happy New Year" to all the extremely hardworking and "Never say die" fellow Indians!

(Views are personal)

23.08 | 0 komentar | Read More

Govt proposes 30% local procurement for foreign cos

 Foreign companies selling goods  worth over Rs 300 crore to government or PSUs would have to source part of their supplies from domestic manufacturers, according to the new draft National Offset Policy (NOP).

According to the draft policy prepared by the Commerce Ministry, minimum value of the offsets obligation would be 30 per cent of the estimated cost of the import, meaning the company will have to procure this percentage from local players to boost domestic manufacturing.

"This was proposed by the Ministry in the draft policy which would be considered the Committee of Secretaries headed by the Cabinet Secretary by the end of this month and then it would be approved by the Union Cabinet," sources said.

The policy is aimed at boosting manufacturing sectors growth. Besides it would help in attracting investments; transfer and acquisition of new technology; acquisition of raw material and assets; improving balance of payment; increasing capacity for R&D; long term supply pacts; and enhancing exports.

Sources said that the policy would be applicable to the central government and state-run firms procurement. Sectors which will be covered under the NOP include civil aerospace, power, fertiliser, railways and other transportation, ports and shipyards, mining, medical equipment, medicine and telecom.

However sectors including defence, atomic energy and space would not be covered under the policy. Defence sector has a separate policy while atomic energy and space would pursue offsets in their contracts independently.

For smooth operation of the NOP, a 10-member National Offsets Authority (NOA) is also proposed. It would be headed by the Cabinet Secretary and comprises of secretaries of commerce, expenditure, foreign, economic affairs and Director General of Foreign Trade.

Offsets will require any foreign seller of products and services in India to buy part of the material at a pre-determined percentage of the sale value from the Indian manufacturers and suppliers. In its response and suggestions on the policy, the Department of Economic Affairs has said that offsets could lead to inefficient procurement practices and high costs.

23.07 | 0 komentar | Read More

May re-look at new delisting norms: Sebi's UK Sinha

As industry opposition mounts against new delisting norms wherein promoters planning to take their company private have to secure the consent of 25 percent of public shareholders, capital market regulator Sebi today indicated that it is ready to have a re-look at them.

The Sebi norms issued last month, which mandate participation of at least 25 percent public shareholders in the delisting process, has also drawn criticism from market participants.

"There is one particular aspect of the new delisting... We will have a relook at it, but first we will wait for some time to see how it pans out," Sebi chairman Upendra Kumar Sinha told investment bankers.

The Sebi board had on November 19 approved revamped norms that aim to reduce the time taken by the delisting process by about half, from minimum 137 days at present, to make the regulatory framework more effective.
 
"Timelines for completing the delisting process has been reduced from 137 calendar days (around 117 working days) to 76 working days," the regulator had said. Apart from reducing the timeline, the watchdog has decided to retain the reverse book-building process for discovering the price of shares for the purpose of delisting.

But at the same time, it also mandated that for the delisting to be successful, at least 25 percent of retail shareholders should tender their shares.

Besides, Sebi said the shareholding of the acquirer, together with the shares tendered by public shareholders, should reach 90 percent of the company's total share capital. To ensure that a delisting plan has been decided in a fair manner, the board should approve it only after the due diligence process, for which it can appoint a merchant banker on behalf of the company and the promoter.

Further, the company board should certify that the firm is in compliance with applicable securities law and that it would be in the interest of shareholders. Sebi said an acquirer would have the option to delist the shares directly through delisting regulations pursuant to triggering takeover norms.

"However, if the delisting attempt fails, the acquirer would be required to complete the mandatory open offer process under the Takeover Regulations and pay interest at the rate of 10 per cent per annum for the delayed open offer.

23.07 | 0 komentar | Read More

Hold Jammu Kashmir Bank; target of Rs 145: ICICIdirect

ICICIdirect.com has recommended hold rating on Jammu and Kashmir Bank (J&K) with a target price of Rs 145, in its research report dated November 17, 2014.

ICICIdirect.com's report on  Jammu and Kashmir Bank (J&K)

J&K Bank's PAT was below estimate at Rs 172 crore, plunging 43% YoY, mainly led by higher provisions of Rs 168 crore vs. expected Rs 80 crore

Asset quality deteriorated QoQ taking absolute GNPA to Rs 2187 crore (GNPA ratio: 4.73% vs. 4.16% in Q1FY15) from Rs 1888 crore. Fresh slippages stood at Rs 377 crore vs. Rs 1161 crore in Q1 but higher than witnessed in earlier quarters. Due to floods, ~ Rs 1200 crore of assets has been impacted of which ~Rs 400 crore have already been classified as stressed assets (RA or slippages) in Q2FY15

Credit growth moderated further to 9.6% YoY (vs. 11.5% in Q1) to Rs 45072 crore. Deposits grew a meagre 2.9% YoY to Rs 62972 crore as on Q2FY15 vs. 8% expected. Margins were strong at 4%
 
"Post the recent poor performance compared to peers, the stock is trading at in-expensive valuations of 1x FY16E ABV. However, owing to a surge in NPA in past two quarters and floods in J&K, we believe it will at least take two or three quarters for the bank to be on track. We have reduced earnings CAGR estimates over FY14-16E from 13.6% earlier to 6.4% now. This is owing to an increase in NPA estimates and consequent enhancement in credit cost. Accordingly, our FY16E ABV reduces to Rs 126 from Rs 146 earlier. We reduce our target multiple from 1.2x FY16E ABV to 1.1x and our target price to Rs 145 from Rs 170 earlier. We maintain HOLD", says ICICIdirect.com research report.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Buy IDBI Bank; target of Rs 110: Way2Wealth

Way2Wealth is bullish on IDBI Bank and has recommended buy rating on the stock with a target price of Rs 94-110 in its research report.

Way2Wealth's report on IDBI Bank

"IDBI Bank, the counter has been an underperformer since June 2014 in comparison to Nifty and other banks from its peer (For the weekly chart pls chk attached pdf). During this journey, the stock buckled almost 50% from the high of 116 and registered a low of 58. Now the level of 58 coincides with the 88.6% Fibonacci retracement of the entire rally from 53 to 116 level (as shown in the chart) and hence it acted as a strong support for the stock. In the past few weeks the stock managed to recover sharply and is now quoting above 70. During this recent up move, the stock started making 'Higher Highs and Higher Lows' on the daily chart after June 2014 which is an optimistic signal."

"At this juncture the immediate resistance for the counter is placed at 74 level. A sustainable move above the same will result in a breakout from 'Bullish Flag' pattern. In addition, the price action is supported by positive crossovers of weekly oscillators like 'Stochastic', 'RSI' and 'RSI – Smoothened'. This indicates that a breakout above 74 can lead to a strong upside in the coming weeks. In such scenario, the stock can retrace 61.8% of the entire fall which is around 94 and above. Therefore, due to the mentioned technical evidences we advise positional traders to go long in the counter ONLY above 74 level. The overall upside target for the counter will be 94 - 110. The stop loss for the trade set up should be placed below 65 levels", says Way2Wealth research report.

Investment Strategy:
Buy ONLY above 74 with a stop loss of 65 for a Target of 94 - 110
Risk/return ratio: 1:4

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Buy Hero Motocorp; target of Rs 3350: Emkay

Brokerage house Emkay Global Financial Services is bullish on Hero Motocorp and has recommended buy rating on the stock with a target price of Rs 3350 in its research report.

Emkay's research report on Hero Motocorp

Hero Motocorp Q2FY15 results were in-line with our/consensus expectations

EBITDA Margin stood at 13.5% (-100 bps YoY, flat QoQ). On a QoQ basis, volumes were flat, product mix was relatively stable and currency movement was modest, resulting into a flattish operating performance

Net Profit at Rs 7.6 bn (+59% YoY, +36% QoQ) was above estimate, largely owing to the higher other income, as the company booked profits on its investment book to meet the payout of the interim dividend . Net profit growth YoY/QoQ look disproportionately high as the licensee fee cost amortization (~Rs 2 bn/qtr) to Honda concluded in Q1FY15

We retain our earnings estimates for FY15/FY16 but raise our TP to Rs 3,350, as we roll forward to FY17 estimates – our TP is based on 15xFY17E EPS of Rs 222.

"Post Q2 results, we maintain our FY15/FY16 earnings estimate but raise our TP to Rs 3,350, as we roll-forward to FY17 estimates. We believe our estimates could see upsides on both volumes (as inflation tames and GDP trajectory improves) and margins (as benefit of cost saving exercises trickle in). We recommend BUY", says Emkay Global Financial Services research.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More

Petrol, diesel rates cut by Rs 2/litre

Petrol and diesel prices were today cut by Rs 2 per litre each as international oil prices slumped to five-year low.  This is the eighth straight reduction in petrol prices since August, and fourth in diesel since October. New rates will be effective midnight tonight, Indian Oil Corp , the nation's largest fuel retailer, announced here.

In Delhi, petrol will cost Rs 61.33 a litre, the lowest in 44 months, as compared to current price of Rs 63.33. The price has been cut by Rs 2.09 a litre in Mumbai to Rs 68.86.  Rates differ from state to state because of varied rates of local sales tax or VAT.

Diesel will cost Rs 50.51 a litre in Delhi, the lowest since July 2013, as against Rs 52.51 currently. In Mumbai, it will cost Rs 57.91 per litre as compared to Rs 60.11. The rate cut would have been steeper but for the government deciding to make hay out of the crude oil rate slump to USD 62.37 per barrel by raising excise duty on petrol by Rs 2.25 and by Re 1 a litre on diesel.

Crude oil price in June was USD 115 per barrel. The prices of petrol and diesel were last revised downwards on December 1 by 91 paisa a litre and 84 paisa per litre respectively (including state levies at Delhi) on the back of declining international oil prices.

 After today's reduction, petrol price has been cut by Rs 12.27 per litre cumulatively since August. Diesel price was cut for the first time in more than five years on October 19 by Rs 3.37 a litre when the government decided to deregulate the fuel. This was followed by a Rs 2.25 a litre reduction on November 1 and 84 paisa per litre on December 1. Cumulatively, diesel prices have been cut by Rs 8.46 a litre in four reductions.

There would have been another reduction on November 15 but the government mopped up, raising excise duty on petrol and diesel by Rs 1.50 a litre each. In the two excise duty hikes, the government has raised its revenue by Rs 10,600 crore this fiscal.

IOC said in a statement: "The prices of petrol and diesel were last revised downwards with effect from December 1 by Rs  0.91 per litre and Rs 0.84 a litre respectively (including state levies at Delhi) on the back of declining international oil prices.

"Since the above price changes, the international prices of both petrol and diesel have continued to be on a downtrend. The rupee-US dollar exchange rate has however appreciated since the last price change. The combined impact of both these factors warrant a decrease in retail selling prices of both petrol and diesel."

The movement of prices in international oil market and Rupee-USD exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, it added.

23.07 | 0 komentar | Read More

Companies (Amendment) Act, 2014

Published on Mon, Dec 15,2014 | 21:01, Updated at Mon, Dec 15 at 21:01Source : Moneycontrol.com 

This week Parliament tabled a bill to amend the Companies Act, 2013. The official press release by PIB listed these important amendments…

The Companies Act, 2013 (Act) was notified on 29.8.2013. Out of 470 sections in the Act, 283 sections and 22 sets of Rules corresponding to such sections have so far been brought into force. In order to address some issues raised by stakeholders such as Chartered Accountants and professionals, following amendments in the Act have been proposed:

1. Omitting requirement for minimum paid up share capital, and consequential changes. (For ease of doing business)

2. Making common seal optional, and consequential changes for authorization for execution of documents. (For ease of doing business)

3. Prescribing specific punishment for deposits accepted under the new Act. This was left out in the Act inadvertently. (To remove an omission)

4. Prohibiting public inspection of Board resolutions filed in the Registry. (To meet corporate demand)

5. Including provision for writing off past losses/depreciation before declaring dividend for the year. This was missed in the Act but included in the Rules.

6. Rectifying the requirement of transferring equity shares for which unclaimed/unpaid dividend has been transferred to the IEPF even though subsequent dividend(s) has been claimed. (To meet corporate demand)

7. Enabling provisions to prescribe thresholds beyond which fraud shall be reported to the Central Government (below the threshold, it will be reported to the Audit Committee). Disclosures for the latter category also to be made in the Board's Report. (Demand of auditors)

8. Exemption u/s 185 (Loans to Directors) provided for loans to wholly owned subsidiaries and guarantees/securities on loans taken from banks by subsidiaries. (This was provided under the Rules but being included in the Act as a matter of abundant caution).

9. Empowering Audit Committee to give omnibus approvals for related party transactions on annual basis. (Align with SEBI policy and increase ease of doing business)

10. Replacing 'special resolution' with 'ordinary resolution' for approval of related party transactions by non-related shareholders. (Meet problems faced by large stakeholders who are related parties)

11. Exempt related party transactions between holding companies and wholly owned subsidiaries from the requirement of approval of non-related shareholders. (corporate demand)

12. Bail restrictions to apply only for offence relating to fraud u/s 447. (Though earlier provision is mitigated, concession is made to Law Ministry & ED)

13. Winding Up cases to be heard by 2-member Bench instead of a 3-member Bench. (Removal of an inadvertent error)

14. Special Courts to try only offences carrying imprisonment of two years or more. (To let magistrate try minor violations).  

Here is the copy of the Bill …. (attached)

23.07 | 0 komentar | Read More

Bisleri an Italian brand that couldn’t be more Indian

Sometimes there are brands that have been better themselves so much in the consumer cycle that they become generic for that category.

Sometimes there are brands that have been better themselves so much in the consumer cycle that they become generic for that category. On Brand that Build India today we feature one such brand, an Italian brand that couldn't be more Indian.

23.07 | 0 komentar | Read More

Cloud Computing - An Access to IT Solution

Malvika Jain is in conversation with industry experts to understand their views and opinions on the adoption of cloud for SMBs

Malvika Jain is in conversation with industry experts to understand their views and opinions on the adoption of cloud for SMBs. The panelists include Meetul B Patel, GM – Small and Midmarket Soultions & Partners, Microsoft India, TT Ashok MD, Taylor Rubber & Co Chairman, CII – Southern Region, Neeraj Aggarwal MD, Boston Consulting Group India and Sandeep Murthy, Partnet at Lightbox.

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Sun-Ranbaxy deal may soon get US FTC go ahead

As a result of its post merger consultation with the US Federal Trade Commission (FTC), the Sun-Ranbaxy combine will most probably have to sell just one drug for the merger to get the green light.

Sun Pharma - Ranbaxy announced it's landmark USD 4 billion merger deal in April. Since then the two entities have been working to receive regulatory clearance, especially from competition authorities. Last week, CCI gave the deal a conditional approval and now the deal is close to getting approval from the US competition authority as well.

As a result of its post merger consultation with the US Federal Trade Commission (FTC), the Sun-Ranbaxy combine will most probably have to sell just one drug for the merger to get the green light.

Initially it was thought to have been 2-3 drugs, but now it is learnt to be two dosage forms of one drug. Sale talks are in advanced stages and it is expected that once sold, the merger will get FTC approval.

Though no clarity has emerged on what this drug this might be, sources say the revenue impact will be negligible in comparison to the size of the merged entity. Sun Pharma says: "The process of receiving clearance from the US FTC is ongoing, it is difficult to give any specifics as well as the time for clearance."

Is final clearance still some time away?

As for progress on the seven drugs identified for sale by the CCI, inquiries have come in but Sun and Ranbaxy are awaiting the appointment of a monitoring agency by CCI as laid out in its order, before proceeding to sell the products. CCI's order says 'the Commission shall appoint an independent agency as monitoring agency for the purpose of supervision of the modification.' The modification being the sale of seven drugs. As per the CCI order, Sun-Ranbaxy have 10 months to complete the divestments.

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Sundaram Top 100 - Series I announces dividend

Sundaram Top 100 - Series I announces dividend, the record date for dividend is December 12, 2014.

23.08 | 0 komentar | Read More

LT Tax Advantage Fund announces dividend

L&T Tax Advantage Fund announces dividend, the record date for dividend is December 12, 2014.

23.08 | 0 komentar | Read More

Birla Sun Life Mutual Fund announces change in exit load

Birla Sun Life Active Debt Multi Manager FoF Scheme announces change in exit load structure, with effect from December 09, 2014.

Birla Sun Life Mutual Fund has announced change in exit load structure under Birla Sun Life Active Debt Multi Manager FoF scheme, with effect from December 09, 2014.

Accordingly the revised exit load will be:

For redemption / switch out of units within 365 days from the date of allotment of units: 2% of the applicable NAV.

For redemption / switch out of units after 365 days but within 730 days from the date of allotment of units: 1.50% of the applicable NAV.

For redemption / switch out of units after 730 days but within 1095 days from the date of allotment of units: 1.00% of the applicable NAV.

For redemption / switch out of units after 1095 days from the date of allotment of units: Nil.

23.08 | 0 komentar | Read More

Reliance MF launches Capital Builder Fund II - Series A

Reliance Mutual Fund launches Reliance Capital Builder Fund II - Series A, a close ended equity scheme, that aims to provide capital appreciation to the investors, which will be in line with their long term savings goal, by investing in a diversified portfolio of equity & equity related instruments with small exposure to fixed income securities.

Reliance Mutual Fund has launched a new fund as Reliance Capital Builder Fund II - Series A, a close ended equity oriented scheme with the duration of 1102 days from the date of allotment.

The investment objective of the scheme is to provide capital appreciation to the investors, which will be in line with their long term savings goal, by investing in a diversified portfolio of equity & equity related instruments with small exposure to fixed income securities. Although, the objective of the Fund is to generate optimal returns, the objective may or may not be achieved.

This product is suitable for investors seeking long term capital growth and investment in diversified portfolio of equity & equity related instruments with small exposure to fixed income securities with high risk - Brown.

The New Fund Offer (NFO) will be open for subscription from December 08 to December 17, 2014. During the new fund offer the scheme will offer units at Rs 10 per unit.

The scheme offers regular and direct plan with growth and dividend payout option, direct plan - growth option.

The minimum application amount is Rs 5000 and in multiples of Re 1 thereafter.

The entry and exit load is Nil.

The scheme will allocate 80%-100% of assets in diversified equity & equity related instruments with medium to high risk profile and invest upto 20% of assets in debt and money market instruments with low to medium risk profile.

The benchmark Index for the scheme is S&P BSE 200 Index.

The fund managers of the scheme will be Samir Rachh and Jahnvee Shah (overseas investments).

23.08 | 0 komentar | Read More

Kotak 50 announces dividend

Kotak 50 announces dividend, the record date for dividend is December 12, 2014.

Kotak Mutual Fund has announced dividend under the non direct plan - dividend option of Kotak 50, an open ended equity growth Scheme. The record date for declaration of dividend is December 12, 2014.

The quantum of dividend on the face value of Rs 10 per unit will be Re 1.00 per unit.

23.08 | 0 komentar | Read More

OBC cuts rates on select term deposits by 0.10%

The new rates, which is for term deposits less than Rs 1 crore, will come to effect from December 9, 2014, the bank said.

Public sector lender Oriental Bank of Commerce  has cut interest rates on select deposits by 0.10 percent to 8.90 percent.

"...has informed BSE that the bank has revised interest rate on term deposits with maturity period 1 year to less than 2 years from 9 percent to 8.90 percent," it said in a regulatory filing to the BSE today.

The new rates, which is for term deposits less than Rs 1 crore, will come to effect from December 9, 2014, the bank said.

Last week, country's largest lender State Bank of India ( SBI ) had cut the deposit rates on maturities of over one year by 0.25 percent, following reduction in deposit rates by private sector peers ICICI Bank  and HDFC Bank .

SBI's deposit of 1 year and less than 5 years will bear interest rate of 8.5 percent, from 8.75 percent earlier, while for deposits of 5 years and above, the rate has been reduced to 8.25 percent from 8.50 percent earlier.

Before this, ICICI Bank and HDFC Bank had slashed deposit rates by up to 0.50 per cent for maturities of up to 1 year.

State-run IDBI Bank had also cut rates on deposits by 0.50 percent cut for maturities starting from 6 months to 20 years.

Shares of Oriental Bank of Commerce today closed 1.38 percent higher at Rs 318.75 apiece on the BSE.

Oriental Bank stock price

On December 08, 2014, Oriental Bank of Commerce closed at Rs 318.75, up Rs 4.35, or 1.38 percent. The 52-week high of the share was Rs 377.30 and the 52-week low was Rs 160.50.

The company's trailing 12-month (TTM) EPS was at Rs 39.71 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 8.03. The latest book value of the company is Rs 447.91 per share. At current value, the price-to-book value of the company is 0.71.

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FM hopeful of insurance mkt expansion once Bill is passed

Finance Minister Arun Jaitley said that he was hopeful that the insurance market expansion would take place once the Insurance Amendment Bill is passed by Parliament.

Paving the way for long pending insurance bill to be placed in the Rajya Sabha, Parliamentary Select Committee has given its recommendations on amendments to the Insurance Act that seek to raise FDI cap to 49 percent .

Finance Minister Arun Jaitley said that he was hopeful that the insurance market expansion would take place once the Insurance Amendment Bill is passed by Parliament. Jaitely was speaking at a meeting with British insurer Standard Life's Chairman Jerry Grimstone and Kotak Group chief Uday Kotak.

"The Finance Minister expressed his sense of satisfaction as the Parliamentary Select Committee has given its recommendations with regard to the Insurance Amendment Bill referred to it," an official statement said.

It, however, did not spell out recommendations by the Committee headed by senior BJP leader Chandan Mitra. There were speculations that the report may contain a few dissent notes by Opposition members in the Committee.

The term of the Committee, set up in August, was last month extended by two more weeks till December 12 to submit its report. The Bill proposes to raise the composite foreign investment ceiling (including FDI, FII and NRI) from 26 percent to 49 percent.

The approval to hike the FDI limit from the current 26 percent, a proposal which has been pending since 2008, is expected to attract long term capital, besides improving the overall investment climate.

There are about two dozen private sector insurance firms both in life and non-life segment. Once the Insurance Bill is passed, the foreign investment ceiling in pension sector too would increase to 49 percent.

In the Rajya Sabha, the ruling NDA does not have majority and would require support from other parties for the passage of the legislation.

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Coal Mines Nationalisation Amendment bill withdrawn from RS

The Coal Mines (Nationalisation) Amendment Bill, 2000 was introduced in Rajya Sabha on April 24, 2000 to amend the Coal Mines Nationalisation Act, 1973, but could not be taken up for consideration.

Government today withdrew from the Rajya Sabha a bill which will have to be further amended in order to comply with the Supreme Court decision to cancel 204 coal blocks allocated since 1993.

The Coal Mines (Nationalisation) Amendment Bill, 2000 was introduced in Rajya Sabha on April 24, 2000 to amend the Coal Mines Nationalisation Act, 1973, but could not be taken up for consideration.

Also read: CIL divestment in 2015; gas pooling not significant: Goyal

The bill, which seeks to allow Indian companies in the private sector to mine coal in the country without the existing restriction of captive mining, was withdrawn by Coal Minister Piyush Goyal as it required more amendments to comply with the recent Supreme Court orders. Welcoming the move, Left parties, especially CPI and CPI-M, expressed concern over de-nationalisation of the entire coal sector.

CPI-M leader Tapan Kumar Sen said, "While welcoming the bill, I want to oppose the context in which the bill will pave way for complete de-nationalisation of coal sector." "Because of the Supreme Court judgement, I agree that the government has to take some executive steps related to coal blocks issue. To that extent, I welcome withdrawal of the bill, but not the context...," he said.

CPI leader D Raja said he opposed privatisation of the coal sector. The Supreme Court had in September cancelled allocation of  204 coal blocks, including 42 operational mines and another 32 ready-to-start blocks.

Another bill that seeks to provide incentives for creating and commercialising intellectual property from public funded research was withdrawn by Science and Technology Minister Harsh Vardhan.

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Delhi rape: Uber taxi service banned in Delhi

Shiv Kumar Yadav, the taxi driver who worked with international cab service Uber, was on Monday produced before a Delhi court in connection with the rape of a 25-year-old woman in the national capital.

Metropolitan Magistrate Ambika Singh sent 32-year-old Shiv Kumar Yadav in police custody till December 11 after the police said he was required to be interrogated for recovery of a mobile phone used by him.

Yadav refused to undergo Test Identification Parade (TIP), a process under the criminal law through which a victim identifies an accused.

Yadav, who was arrested from Mathura in Uttar Pradesh on Sunday by a joint team of Delhi and Uttar Pradesh Police, was produced before the jampacked court with his face muffled amid tight security.

During the hearing, the police sought his custodial interrogation contending that he was required to be questioned to unearth the entire chain of events which led to the incident. The mobile phone, which he was using, also had to be recovered at his instance, it said.

The police said that Yadav was a repeat offender and had spent seven months in jail in an another rape case which was filed against him in south Delhi's Mehrauli area in 2011. It said that the accused has claimed that he was later on acquitted in the rape case. He was brought to Delhi last night after being arrested from Mathura, about 160 kms from the national capital.

Yadav allegedly raped the woman at around 9:30 PM on Friday when the victim, who works for a finance company in Gurgaon, was heading back home in north Delhi's Inderlok area.

As a massive search operation involving 12 Delhi police teams was on in Mathura and other parts of Uttar Pradesh to nab the accused, Delhi Police had also announced a cash reward of Rs one lakh for his arrest.

The Delhi government on Monday banned all operations by private cab service provider Uber with immediate effect and blacklisted it from providing any transport service in the city in the wake of the alleged rape incident. "We condemn this very tragic incident. Transport department has taken stringent action. Registration of the vehicle and licence have been cancelled. All India Tourist Permit has been cancelled. A vehicle which has all India Tourist Permit can't be used as a local taxi. Uber is equally liable as it allowed the vehicle to be used as local taxi," said KS Ganger, Special Commissioner, Transport, Delhi.

The police have also questioned an Uber official. Gagan Bhatia, Director, who looks after the work in Delhi and national capital region, was questioned by the police twice. He avoided all questions when CNN-IBN tried to speak with him.

(with inputs from  pti)

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Cadila recalls 15,144 bottles of hypertension drug in US

The nationwide recall has been initiated by the company on October 1 this year and has been initiated under Class-III which FDA defined as "a situation in which use of or exposure to a violative product is not likely to cause adverse health consequences".

Cadila Healthcare  is voluntarily recalling 15,144 bottles of its anti-hypertension drug Amlodipine Besylate tablets in the US market, according to the US Food and Drug Administration (USFDA).

As per information available on the USFDA website, Zydus Pharmaceuticals USA Inc, the US-based arm of the company, is recalling the drug due to "discoloration". "Brown spots were noted embedded in Amlodipine Besylate Tablets, 10 mg," the US health regulator said.

The nationwide recall has been initiated by the company on October 1 this year and has been initiated under Class-III which FDA defined as "a situation in which use of or exposure to a violative product is not likely to cause adverse health consequences".

Comments from the company could not be obtained immediately. The tablets, which are indicated for the treatment of hypertension, to lower blood pressure, were manufactured by Cadila Healthcare and distributed by Zydus Pharmaceuticals USA Inc.

Headquartered in Ahmedabad, Zydus Cadila group has global operations USA, Europe, Japan, Brazil, South Africa and 25 other emerging markets. The group's operations range from active  pharmaceutical ingredients (API) to formulations, animal health products and cosmeceuticals.

Cadila Healthcare shares today closed at Rs 1,586 a piece on the BSE, down 1.34 percent from its previous close.

Cadila Health stock price

On December 08, 2014, Cadila Healthcare closed at Rs 1586.00, down Rs 27, or 1.67 percent. The 52-week high of the share was Rs 1760.00 and the 52-week low was Rs 723.10.

The company's trailing 12-month (TTM) EPS was at Rs 47.60 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 33.32. The latest book value of the company is Rs 177.28 per share. At current value, the price-to-book value of the company is 8.95.

23.08 | 0 komentar | Read More

Here are some commodity trading ideas from Kunal Shah

Watch the interview of Kunal Shah, Nirmal Bang Commodities with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

Watch the interview of Kunal Shah, Nirmal Bang Commodities with Shereen Bhan on CNBC-TV18, in which he shared his reading and outlook on commodity markets and specific commodities.

23.07 | 0 komentar | Read More

Accumulate Union Bank; target of Rs 260: PLilladher

Prabhudas Lilladher is bullish on Union Bank of India and has recommended accumulate rating on the stock with a target of Rs 260 in its October 31, 2014 research report.

Prabhudas Lilladher`s research report on Union Bank of India

"Union Bank reported muted performance in Q2FY15 with net profit declining by 44% YoY affected by weak NII growth and higher provisions. NIMs contracted by 7bp QoQ due to interest reversals (Rs730 mn) on new slippages and ~14% QoQ decline in current account deposits. Core fee income surprised positively as it grew 21% YoY far ahead of balance sheet growth and pulled core revenue growth to 14% YoY. Asset quality disappointed as fresh slippages stood at Rs19.68bn (3.4% annualized) and was led by lumpy slippages in textile and cement sectors. However management maintained its guidance to bring down GNPL ratio to ~4% by end of FY15 vs 4.7% currently and improve NIM to 2.8-2.9%. We maintain ACCUMULATE with PT of Rs260 which corresponds to 0.8x Sep-16 ABV."

"UNBK reported 13% YoY growth in revenues led by 21% YoY growth in core fee income and 165% YoY growth in exchange profits. NII growth was muted at 6.6% YoY affected by – (1) interest reversal of Rs730mn due to elevated slippages (~3.4% annualized) during the quarter (2) ~14% QoQ decline in current account deposits. Operating expenses increased by 8.7% QoQ and further pushed PPOP growth down to 9% YoY. Asset quality disappointed as stressed asset formation remained high at ~Rs29 bn led by rise in both fresh slippages and restructuring. Slippages was lumpy in nature with two accounts (one each in textile and cement sectors) forming ~40% of total slippages. O/s restructured asset portfolio increased marginally to 5.3% of total loans (2.8% excluding SEB restructuring) though still stands better than peers. Management maintained its guidance to bring down GNPL ratio to ~4% and improve NIM to 2.8‐2.9% by FY15 end. Tier I capital at 7.3% (without profits) in Q2FY15 remains low but is not expected to be alarming as management reiterated of slowing loan growth to 10‐12% for FY15, helping maintain capital levels and pre‐empt the need for immediate capital infusion. We maintain ACCUMULATE with PT of Rs260/share which corresponds to 0.8x Sep-16 ABV," says Prabhudas Lilladher research report. 

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

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Tax regulatory fears mar sentiments of e-tailing firms

Over the weekend global e-tailer Amazon in a filing to the US Securities and Exchange Commission cautioned investors about issues related to interpretation of India's laws which could potentially impact its business plans.

Indian e-commerce is the flavour of the season with foreign investors and e-tailers lining up large chunks of capital. But the regulatory uncertainty surrounding the sector is causing concerns though money continues to be committed to the market for now.

Over the weekend global e-tailer Amazon in a filing to the US Securities and Exchange Commission cautioned investors about issues related to interpretation of India's laws which could potentially impact its business plans. The government certainly isn't helping matters reports Poornima Murali and Kritika Saxena

23.07 | 0 komentar | Read More

Hold IndusInd Bank; target of Rs 750: Sushil Finance

Sushil Finance has recommended hold rating on IndusInd Bank with a target price of Rs 750, in its research report dated October 21, 2014.

Sushil Finance`s research report on IndusInd Bank

"Indusind Bank Ltd. (IIB) has reported good set of numbers for the quarter ended September'14 with superior growth & stable asset quality. We attended the conference call of the company and following are the key highlights of the results."

"Healthy advances growth (~22% YoY) coupled with stable NIMs (3.63% v/s 3.66% Q1) resulted in strong NII growth which grew by ~19% YoY & 4% QoQ to Rs.8.3 bn. Advances growth was mainly on back of robust growth in corporate loan book which grew by ~37% YoY while retail portfolio grew by modest 7% YoY. Sluggish growth in retail was on account of flattish growth in vehicle segment while non-vehicle segment witnessed strong growth in the quarter (Corp/Retail 57:43). Deposits grew by ~24% YoY on back of better CASA growth which stood at ~33% YoY. CASA ratio improved by 60 bps in Q2 to 33.9% (Q1-33.3%). Better growth in Forex, Distribution/Loan processing fees & Investment Banking led to strong growth in corefee income which grew by 31% YoY & 5% QoQ. Management expects core-fee income to remain stable going forward. Healthy NII growth, stable NIM's, consistent core-fee income growth coupled with cost optimization (C/I – 47.9%) has led to healthy growth in PPP which grew by ~23% YoY.Asset Quality remained stable with GNPA & NNPA at 1.08% & 0.33% resp. Slippages in Q2 were low at 0.8% (annualized) with remarkable improvement seen in corporate & CV portfolio. Total Credit Cost for Q2 & H1 stood at 10 bps & 25 bps resp. while PCR stood at 70%. Restructured book increased slightly to 0.5% due to 4-5 new accounts getting restructured in this quarter. CRAR under Basel III stood at ~13.0% with ROE & ROA at ~18% & 1.9% respectively.Management Guidance: 1) NIMs likely to remain stable with upward bias due to likely asset rebalancing & lower cost of deposits. 2) CV cycle showing signs of bottoming out with revival expected over next few months (~20% of book). Have witnessed some uptick in Auto segment incl. CV in Sept'14 after almost 12-15 months. 3) Branch expansion to continue - added 85 branches in H1 to 687 branches & expects the total branches to reach 800 by FY15 end. 4) Credit cost for FY15E to be ~50-55 bps."

"Strong advances growth, healthy NIMs coupled with stable asset quality has led to superior performance in the current quarter. Strong execution track record coupled with well-defined strategy over FY14-17E (advances growth CAGR ~25-30%) to auger well for the bank's growth over the next 3-4 years. Sustainable & profitable above-industry growth with stable asset quality & improving return ratios to result in likely re-rating of the stock going forward. Moreover, we have been conservative on asset quality assumptions, thus providing upside risk to our estimates. Hence, considering the sound fundamentals & strong growth prospects, we remain positive on the stock & recommend 'Hold' with a revised price target of Rs.750 based on our FY17E estimate," says Sushil Finance research report. 

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Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

23.07 | 0 komentar | Read More