APOLLO HOSPITAL A risk free bet for long term

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.

WHAT IS SPECIAL IN APOLLO HOSPITAL?

ANALYSIS ON SIB Q 1 RESULT

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.

Pls book profit in financial technology

hope u all enjoyed financial technology call.If u bought it at 800 levels sell it around 880-890 levels now

BUY FINANCIAL TECHNOLOGY

Have you noticed financial technology scrip?Now it is trading at 800 with an EPS of Rs.20 and pe ratio of 40.The Financial Technologies group is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next-generation financial markets, that are transparent, efficient and liquid, across all asset classes including equities, commodities, currencies and bonds among others.

The Financial Technologies group operates one of the world’s largest network of 10 exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending, and payment gateway among others.

Rating agency Crisil today said the proposed initial share sale of Multi Commodity Exchange of India (MCX) has strong fundamentals, especially reflecting its leadership position in the Indian commodity futures market.

MCX filed draft papers for the IPO with capital market regulator Sebi on March 31.

The share sale is expected to raise an estimated Rs 800 crore, according to market sources.

Crisil has given "five on five" IPO grade for MCX, which is promoted by Financial Technologies India.

"This grade indicates that the fundamentals of the IPO are strong relative to other listed equity securities in India," the rating agency said in a statement.

According to Crisil, the grade also reflects MCX's leadership position in the Indian commodity futures market over the past four years. The entity had an 82% share of the overall traded turnover in fiscal year 2010.

"It is a leader in the trading of bullion, crude oil, copper and natural gas," the statement noted.

"With a strong technology-backed trading platform and infrastructure, MCX is able to provide high liquidity and low impact cost of transactions – key criteria for the success of any exchange," it added.

Crisil pointed out that the rating also considered the benefits that MCX would derive from amendments to the Forward Contracts (Regulation) Act -- that would allow trading of options and indices as well as participation by institutional investors. This would in turn increase the traded turnover on commodity exchanges.

"While new commodity exchanges have been set up over the past couple of years, they have not been able to nudge MCX from the top. However, we expect competition could intensify in the future," it said.

MCX's operating income has increased at a CAGR (Compound Annual Growth Rate) of 18.3% over FY08-10.

So consider financial technology as a trading idea and i think it can be bought around 800 levels and can sell at around 860-890 levels...Please note down that this is a momentum call and dont wait for exact target in volatile market conditions.Act wisely........................................

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