Wednesday, July 27, 2011
Monday, July 25, 2011
Sunday, July 24, 2011
Apart from opening up doors for the likes of WALMART and Carrefour, which have been waiting in the wings for years, it would eventually also benefit small and marginalized farmers as well, industry experts who spoke to TOI said.
According to Thomas Varghese, chairman, CII National Retail Committee and CEO, Aditya Birla Retail, "The move will bring in the required funds from all kinds of foreign investors into modern retail which was till date stymied for funds." Varghese said that once the funds come into India through the FDI route, it will usher in a phase of expansions. Once cleared, the move would offer Indian companies the option of selling a part of their stake to foreign companies enabling them to become debt-free. "For us as a company, the option to sell a stake comes into play in order to make ourselves debt-free. The FDI will throw open opportunities which will enable us to sell a stake and raise funds," said Kishore Biyani, chairman , Future Group, India's largest retailer which operates stores like Big Bazaar and Food Bazaar.
"For us, categories like home, electronics will gain immensely if we bring in a partner. The industry has the potential and, with the opening up of the sector, can grow faster," said Biyani, who hoped that closure on the much-awaited policy change was just a step away.
Friday, July 22, 2011
Hi friends,i have already posted a report on apollo hospital earlier.now i have another reason for retaining buy on apollo hospital that is its successfull QIP issue.Hope u all know what is QIP.Qip means a designation of a securities issue given by the Securities and Exchange Board of India (SEBI) that allows an Indian-listed company to raise capital from its domestic markets without the need to submit any pre-issue filings to market regulators.
APOLLO HOSPITAL today said it has closed the share sale to the qualified institutional buyers, which it had recently started to raise Rs 330 crore for expansion purposes.
In a filing to the Bombay Stock Exchange (BSE), Apollo Hospitals said the company fixed the price of the issue at Rs 495 per equity share. It had started the placement of shares with qualified institutional buyers from July 14, and closed today.
Nomura Financial Advisory & Securities (India), Enam Securities and Citibank are the managers to the share sale. "The Rs 330 crore to be raised through the QIP issue would be used to part-fund a Rs 1,100 crore investment to add another 2,400 beds by March, 2014," Apollo Hospitals Chief Financial Officer Akhileswaran Krishnan had told PTI earlier. "The rest of the capital would be raised through debt and internal accruals," he had added.It is heard that sundaram MF and fidelity were some of the investors in the issue
Wednesday, July 20, 2011
Crompton Greaves is a stock that has been oversold this week due to week Q1 numbers.Crompton Greaves a power equipment manufacturer and electrical appliance maker, reported a sharp decline in April-June consolidated net profit by 58.6% to Rs 79 crore yesterday on the back of listless revenue growth and higher raw material costs. Disappointment in earnings, which triggered a sharp sell off, made investors edgy and the discomfort reflects in share prices as it tumbled back to its 52-week low of Rs.170.
The main reason for CG week Q1 numbers is due to the dealers have not picked up products, thus, adding to inventory and not moving sales. Nobody expected, until last 31st March when the consumer was growing in that quarter at 35-36%, it will come down to 2%. But, thats the scenario of the whole market and it is not exceptional to this firm.
Moreover The biggest worry has been the Middle-East Libyan tension and Mena crisis North Africa situation in Europe and those things from Europe have not moved in the month of June. Since they haven't moved and been incapable of adding to bottom-line margins because those were the good jobs which should have moved and created margins for the overseas operations. This is a scenario as on this state, but I am sure six months down the line the things will change and stabilize.
In India, power has slowed down and was slow last year as well. We are hopeful that it will pick up in the second half of the year as the country cannot afford to not place orders for power T&D, even if it has to achieve 7.5-8% growth for 8.5-9% GDP. I am sure that things will fall in place. The stuck up projects due to land, forest and environment issues will be back on track. In a macro view, the single digit growth in power sector should be possible. Crompton Greaves will do better than the sector.
So i initiate a buy on this stock from current level of 170 to a six month target of 240 level
Tuesday, July 19, 2011
Hi friends,hope u all enjoyed handy gains in pantaloon retail which i recommended at Rs.270 level and shoppersstop at 400 level.Now pantaloon is trading at Rs.325 and shoppersstop at Rs.470 levels.Still i recommend to continue holding in this stocks as there is improvement in allowing FDI in multi brand reatil sector.So i advice my clients to buy these two stocks in every dip.
Many friends asked me how u got good report on pantaloon and shoppersstop.The answer is simple.Lots of news in market about allowing FDI in multi brand sector.So i thinked which all companies will get benefited.I found pantaloon,shoppesstop,fch,trent etc will me impacted.so just watched their fundamentals and recommended.
So pls continue watching my small blog and suggest me how can i improve a lot
Monday, July 18, 2011
Saturday, July 16, 2011
Apollo Hospitals Enterprise Ltd’s (Apollo’s) Q4FY11 results exceeded
expectations on higher revenues from the newly established hospitals,
low interest cost and the decline in losses from associates. We remain upbeat
on the growth prospects of the healthcare services industry and Apollo’s
leadership position in the organised healthcare delivery market. Although
Q4FY11 results were above our expectations, we maintain our earnings
estimates after factoring in slight delays in commissioning of the new beds. We
maintain our fundamental grade of 5/5.
Key developments: 57 pharmacy stores were added during Q4
During the quarter, Apollo added 57 pharmacy stores, totaling ~1,200 stores
as of FY11. The company is going slow on new store additions and is focusing
on increasing profitability of the existing stores. We remain positive on the
retail pharmacy business and expect profitability to improve to 3.9% in FY13
from 0.5% in FY11.
Valuations: Current market is aligned
We continue to use the discounted cash flow method to value Apollo. We
maintain our fair value of Rs 533 per share. At this fair value, the implied P/E
multiples are 31.1x FY12 and 27.5x FY13 EPS. Given the current market price,
the valuation grade is revised to 3/5 from 4/5.
Thursday, July 14, 2011
Thrissur-based SOUTH INDIAN BANK (SIB) has registered its highest ever quarterly net profit of Rs 82.49 crore for the three months ended June, clocking a growth of 41.15 per cent over the year-ago period.
The bank had posted a net profit of Rs 58.44 crore in the April-June quarter last year.
SIB's business has increased by Rs 13,556 crore from Rs 40,217 crore to Rs 53,733 crore on year-to-year basis, a growth of 33.71 per cent, the bank's CEO and Managing Director V A Joseph said while announcing the first quarter results.
While deposits went up by 35.54 per cent to Rs 31,662 crore from Rs 23,331 crore (y-o-y) during the quarter, advances increased by 31.18 per cent from Rs 16,886 crore last year to Rs 22,151 crore.
Low-cost, or CASA (current account saving account), deposits increased from Rs 5,852 crore to Rs 6,789 crore, registering a growth of 16.02 per cent, he said.
The bank earned a total income of Rs 820.34 crore during the quarter as against Rs 581.78 crore last year, a growth of 41.01 per cent. It maintained the net interest margin (NIM) at the same level of 2.8 per cent as in the first quarter of June, 2010-11, he added.
The bank planned to raise Rs 1,000 crore through QIP (Qualified Institutional Placement), which will be completed by September this year.
Joseph said the bank planned to open 57 more branches in the current fiscal to take the total number of branches to 700.
Currently sib is trading at Rs.24 and with an EPS around 2.6 and PE ratio near 10.So i continue my buy rating on south indian bank upto a short term target of 32 on scrip.