Sunday, January 29, 2012

Stock-Jungle Portfolio

Lets create portfolio and watch it in a particular interval of time. Lets discuss and find out each shares UP and DOWNs. Lets assume 27-jan-2012 as start date of our portfolio. Lets take some recommended shares in our portfolio.

S.No Share Name Quantity Purchase price Current market value(INR) Value on purchase date(INR) Purchase date
1 Shree Renuka Sugars Ltd. 100 39.25 3925 3925 27-Jan-2012
2 Axis Bank Ltd 5 1075.75 5378.75 5378.75 27-Jan-2012
3 Tata Steel Ltd. 10 458.75 4587.5 4587.5 27-Jan-2012
4 NTPC Ltd. 20 173.75 3475 3475 27-Jan-2012
5 Larsen & Toubro Ltd. 5 1381.60 6908 6908 27-Jan-2012
24274.25 24274.25
Total invested amount on 29-Jan-2012 is 24274.25 INR. Lets see the same portfolio value in few days later. Until than  please wait.. This tracking will be under the label 'Portfolio'.

Friday, January 27, 2012

‘Buy’ Yes Bank

  • Buy rating on Yes Bank is maintained with an increased target price of Rs.354 over one year. TP increased on upward revision of earnings prospects. The bank reported 3QFY12 net profit of Rs. 250 crore, which increased 32.9% yoy. Net interest income at Rs.430 crore is up 32.3% yoy.
  • Net interest margin (NIM) was flat at 2.8%v qoq.
  • Company’s earnings projections were revised upward by 8.4% for FY12, by 9.5% for FY13 and by 11.3% for FY14.
  • The bank could maintain margins as 38% of incremental deposits during the quarter were lower cost CASA deposits against 15% in 2QFY12.
  • The bank is expected to benefit from policy rate cut as wholesale deposits would get re-priced at lower rates.
  • Currently traded at 1.7 multiple of FY13 adjusted book value estimates. This valuation looks attractive for a bank with ROE estimate of 21% over FY12- 14.
  • Risks to the target price may arise from higher slippages in the SME and infrastructure space.

Tuesday, January 24, 2012

Axis Bank

Buy rating on Axis Bank is maintained with a higher target price of Rs.1186 over one year, as against 
the earlier target   price of Rs.1127.

The TP is hiked on upward revision of its earnings estimates on stable NIM and higher other income.
Earnings estimates for  FY12 have been hiked by 3.7% and by 4.6%, by 4.1% for FY13 & FY14 

For 3QFY12, net profit at Rs.1100 crore increased 23.7% yoy. Net interest income at 2140 crore 
increased 23.5% yoy with stable net interest margin at 3.75%.

Slippages remained more or less stable at 1.7% and this seems to be a positive. Stressed assets were 
reported at Rs. 8-8.5billion. It would be a positive if this level could be maintained from going up.

The bank has added 34% of its current branch network during the last two years. Its benefits are 
expected to accrue and will key earnings driver in the near term.

The bank had achieved higher priority sector requirements of around 45% in FY11 against 40% by the 
RBI norms. So the bank need not expand lending in this segment. This coupled with retail loan growth, 
the bank would maintain its profit margins.

Friday, January 20, 2012

‘Buy’ Hero Motocorp – TP Rs.2050

  • Company’s 3QFY12 revenue increase at 17% yoy and EBITDA at 31% yoy are in line with market expectations.
  • EBITDA margin at 15.8% up 170 bps yoy and 10 bps down qoq has also been line with market estimates.
  • Company could offset higher raw material cost by lower other operating expenses.
  • Depreciation increase of 7% is due to weakness in rupee against JPY.
  • Domestic motorcycle volume increased 11% yoy against industry growth rate of 9%,  translating in to market share gain of 125 bps yoy.
  • Company showed healthy improvement in all operating parameters yoy. Sequentially, the margins are slightly down due to seasonality and change in product mix.
  • 4QFY12 volume growth is expected to be similar to that of 3Q. 
  • Honda’s entry in to 100 cc bikes has been a significant overhang on the stock. However, the brand equity and distribution edge enjoyed by the company would help limit market share loss.
  • Market share gain in 125 cc bikes and scooter segment will limit the market share loss in the two wheeler segment.

Monday, January 9, 2012

Sun TV Network has launched three new pay channels

Sun TV Network has launched three new pay channels from Monday -- Sun Life, Sun TV RI (Rest of India) in Tamil and Gemini Life in Telugu.

Sun Life and Gemini Life will focus on areas like lifestyle, religion, health and education, the Chennai-based broadcaster said. Sun TV RI will transmit the same content that goes on air on its flagship Sun TV channel, but the broadcast will be specialized for all states other than Tamil Nadu, allowing advertisers to focus on specific geographical areas.

The company now has 32 TV channels, which includes 12 in Tamil, nine in Telugu, seven in Kanada and four channels in Malayalam languages, Sun TV said.

Sun TV has been quite aggressive in launching new channels and pushing new content recently. Last week it launched four advertisement free action movie channels in Tamil, Telugu, Kannada and Malayalam. In December, it had launched four high definition TV channels, three in Tamil and one in Telugu.

Wednesday, January 4, 2012

ICICI Prudential Fixed Maturity Plan Series 61- 18 months Plan B

The launch of ICICI Prudential Fixed Maturity Plan Series 61- 18 months Plan B. A close-ended debt fund, which seeks to generate regular returns by investing in a portfolio of fixed income securities/ debt instruments which mature on or before the date of maturity of the Plan.

Date of Opening         January 03, 2012
Date of Closing         January 09, 2012
Asset allocation & Credit profile Non-Convertible Debentures: AAA - 0-5%, AA - 95-100%