Trafigura's 1st Asia refinery investment in India; BP out

Oil trader Trafigura has made its first move into refining in Asia, investing up to $130 million for a 24 percent stake in Nagarjuna Oil Corp Ltd's (NOCL) planned refinery in Tamil Nadu and replacing BP as NOCL's crude supplier. India and other emerging markets are boosting refining capacity to feed rising regional demand, while their counterparts in the United States and Europe restructure or shut

BUY NAGARJUNA OIL AT Rs.7 FOR LONG TERM

Nagarjuna Oil Corporation Limited (NOCL) is setting up a petroleum refinery at Cuddalore, Tamil Nadu, 180 km south of Chennai on the Bay of Bengal. This state-of-the-art project will refine 6 million metric tonnes of crude petroleum per year (MMTPA) in Phase-I, which is around 1,25,000 BPSD, and will primarily meet the growing energy needs of southern India. The project site is spread over an area of 2100 acres, including 300 acres of greenbelt. 

It is the single largest private sector investment in Tamil Nadu and declared as anchor unit for the proposed Petroleum Chemical & Petrochemical Investment

The Cabinet, on Wednesday, approved the proposal of the Tamil Nadu Government to set up a Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) in Cuddalore and Nagapattinam districts.

PCPIRs have already been approved in Andhra Pradesh, Gujarat, West Bengal and Orissa.

According to an official statement , the Cabinet Committee on Economic Affairs (CCEA) approved the proposal at its meeting headed by Prime Minister Manmohan Singh.

A total investment of about Rs.92,160 crore is expected in the Tamil Nadu PCPIR, which includes committed investment of Rs.22,160 crore. It envisages development of physical infrastructure such as roads, rail, air links, ports, water supply, power, desalination plant and CETP (common effluent treatment plant) at a total cost of Rs.13,354 crore.

The PCPIR policy prescribes that infrastructure will be created/upgraded through public-private partnership (PPP) to the extent possible, and Central Government will provide the necessary viability gap funding (VGF). The Tamil Nadu Government has sought central support to the tune of Rs.1,143 crore on account of VGF funding for two road-related projects, CETP and desalination plants and Rs.1,500 crore of direct budgetary support for a rail project.

The project will be in Cuddalore and Nagapattinam districts in the coastal belt of Cuddalore, Chidambaram, Shirali and Tarangambadi Talukas. It will cover an area of 256.83 sq. km. with a processing area of 104 sq. km. and the balance for non-processing activities.

Nagarjuna Oil Corporation Ltd. (NOCL), a joint venture of Tamil Nadu Industrial Development Corporation Ltd. (TIDCO) and Nagarjuna Fertilisers and Chemicals Ltd. (NFCL), the flagship company of the Nagarjuna Group, has been identified as one of the anchor tenants for the PCPIR.

NOCL is setting up a 6-million metric tonnes per annum (mmtpa) refinery project at Cuddalore at a total cost of Rs.9,660 crore. The project activities have commenced, and are likely to be completed by September 2013. NOCL has also finalised in-house configuration mapping for expansion of the refinery by 9 million tonnes , and bringing the total crude processing capacity to 15 million tonnes per annum by 2015-16.

Apart from regular petroleum fuels that are expected from this expansion, NOCL plans to set up a xylene production facility, purified terephthalic acid (PTA) plant and a propylene recovery unit. The second anchor tenant is Chennai Petroleum Corporation Ltd. (CPCL), which is planning to establish an integrated 15-million tonnes per year capacity refinery-cum-petrochemical complex. It will have a grassroot refinery along with ethylene cracker, downstream derivative units as well as aromatic complex, paraxylene. The project is designed for production of 1.2 mmtpa of ethylene. It envisages an investment of Rs.40,000 crore beyond 2015.

My stock for the year DEN is at year high today

Den Networks has soared 7% at Rs 123, also its 52-week high, after the company said that overseas investor - TIAA-CREF Investment Management, LLC has bought one per cent of the company through open market transaction.

“TIAA-CREF Investment Management, LLC has acquired 1.3 million shares representing 1% stake of the company through market purchase on July 11,” Den Networks said in a filing.

Total holding of TIAA-CREF Investment Management, LLC in broadcasting and cable TV Company now increased to 5.93% from 4.93% after this acquisition.

New York-based TIAA-CREF Investment Management, LLC operates as a subsidiary of Teachers Insurance and Annuity Association College Retirement Equities Fund.

The stock has outperformed the market by appreciating 156% so far in 2012, compared to around 12% rise in benchmark Sensex.

The trading volumes on the counter surged almost four-fold today, with a combined 1.8 million shares have changed hands so far on the BSE and NSE

India: Digitisation positive for cable TV

This is my old post regarding Cable Digitization in Indianmetros...I am again posting this info to have a look at my recos 

The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers.
The much-awaited Cable TV Networks Regulation Amendment Bill was finally passed by the Lok Sabha on Tuesday paving the way for the next digital wave in the country.

The move will cheer investors of DTH operators and Multiple System Operators like Den Network and Hathway Cables.
The Bill aims to digitise India's vast cable TV network by the end of 2014.
The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers
With this Bill being passed, nearly 80 per cent of the subscribers who are under-declared in the analogue regime will be forced to go digital, translating into higher revenues across the chain.
The move is also expected to benefit broadcasters as it will help derisk their revenue base by increased subscription revenues through advertising revenues. While this move is expected to be a win-win for all stakeholders, it has faced stiff opposition from Local Cable Operators who will be compelled to allign with MSOs.

With digitization, viewers stand to benefit with more number of channels and better quality viewing. But with the capital requirement for digitization estimated at Rs 20,000 crore, it is going to be a cash guzzling task.

SO I RECOMMEND HATHWAY CABLES AT RS.110 FOR A TARGET OF 240 WITH A ONE YEAR PERSPECTIVE AND DEN NETWORK AT RS.54 FOR A TARGET OF RS.250 IN COMING YEARS

STOCK SCANNER

India: Digitisation positive for cable TV

This is my old post regarding Cable Digitization in Indianmetros...I am again posting this info to have a look at my recos 

The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers.
The much-awaited Cable TV Networks Regulation Amendment Bill was finally passed by the Lok Sabha on Tuesday paving the way for the next digital wave in the country.

The move will cheer investors of DTH operators and Multiple System Operators like Den Network and Hathway Cables.
The Bill aims to digitise India's vast cable TV network by the end of 2014.
The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers
With this Bill being passed, nearly 80 per cent of the subscribers who are under-declared in the analogue regime will be forced to go digital, translating into higher revenues across the chain.
The move is also expected to benefit broadcasters as it will help derisk their revenue base by increased subscription revenues through advertising revenues. While this move is expected to be a win-win for all stakeholders, it has faced stiff opposition from Local Cable Operators who will be compelled to allign with MSOs.

With digitization, viewers stand to benefit with more number of channels and better quality viewing. But with the capital requirement for digitization estimated at Rs 20,000 crore, it is going to be a cash guzzling task.

SP I RECOMMEND HATHWAY CABLES AT RS.110 FOR A TARGET OF 240 WITH A ONE YEAR PERSPECTIVE AND DEN NETWORK AT RS.54 FOR A TARGET OF RS.250 IN COMING YEARS

BUY INFO-EDGE FOR VALUE PICK

The recruitment scenario through the online mode, has remained reasonably good despite apprehensions of a slowdown in the economy.

Sectors such as IT have not cut down on their projections of intake in manpower. Info Edge offers a good opportunity for investors with a two-year horizon. It offers a play on the increasing popularity of online portals that offer free and paid services for a variety of activities such as job search, marriage and home finding.

Continuous improvements in resume registrations in naukri.com and ever expanding non-recruitment business through portals such as jeevansathi.comand 99 acres.com are key positives for the company.

At Rs 711, the share trades at 24 times its likely per share earnings for FY13. This is lower than the levels it has traded at historically. Besides, its financial growth rate and lack of listed Indian peer, justify its relatively higher valuations compared to the broader markets.

In FY12, Info Edge's revenues increased by 29.3 per cent over the previous fiscal to Rs 416.5 crore, while net profits improved by 46 per cent to Rs 122.6 crore.

That it has managed these figures in a slowing economy suggests that the company's business-mix helps it stay resilient.

RECRUITMENT BUSINESS STRONG

Info Edge's recruitment portal naukri.com has had a good run over the past few years; it did reasonably well even in the slowing economy last year. The total recruitment business accounts for over 80 per cent of the company's revenues.

In FY-12 alone, the number of resumes on the portal rose to 29 million, up 4 million from a year earlier. What is even more desirable is the fact that the number of resumes modified daily has increased from 72,000 to 91,000. This suggests continuous interest from existing pool of customers. Data from agencies such as Comscore, suggests that naukri is ahead of portals such as timesjobs and monsterindia with a traffic share of 60 per cent.

The IT (25 per cent of revenues), infrastructure (21 percent) and BFSI (5 per cent) sectors form the bulk of recruiters on the portal. Large software companies such as TCS and Cognizant have not announced any cut in their intakes for the year, which means that the perceived slowdown may be very company-specific in this sector.

In the infrastructure sector too, large companies such as L&T and BHEL are still in the hiring mode. The segment also witnesses high attrition, which is a good thing for job portals. Banks, especially public sector ones, are likely to continue hiring, given their talent crunch and exit or retirement in middle- and senior managements.

Notably, advertising for vacancies is rapidly vanishing from the print space in favour of online recruitment, with even public sector companies calling for positions though online ads and registrations. In this regard portals such as naukri would be beneficiaries.

OTHER SEGMENTS STEP UP

Apart from its recruitment business, Info Edge has witnessed increasing contribution from its other key segments such as marriage portal (jeevansathi.com) and its real-state focused Web site (99acres.com). From accounting for next to nothing a few years back, these segments now contribute to 20 per cent of revenues and have been growing at a faster clip than the overall company rate.

Jeevansathi.com has seen continuous increase in the number of profiles created. Marriage being a non-cyclical event is less susceptible to macro-economic shocks. In fact, the average amount realised per customer has risen 14.6 per cent in 2011-12 to Rs 3120.

In 99acres.com too, the number of paid transactions has increased rapidly. The company has recently launched meritnation.com, a Web site that caters exclusively to school-going children. It offers study material, NCERT solutions, and interactive learning solutions. While the business is at a nascent stage, it holds value given, Info Edge's ability to monetise its Web offerings.

RISK

The marriage and real-estate portal are loss-making, face heavy competition and are not the top players in those segments, unlike the recruitment portal. Any increase in advertising spends for greater brand visibility or cutting of prices to take on competition can hurt margins.

THIS RECOMMENDATION IS FROM BUSINESSLINE.I JUST SHARED THIS FOR MY CLIENTS

BUY INFO-EDGE FOR LONG TERM

The recruitment scenario through the online mode, has remained reasonably good despite apprehensions of a slowdown in the economy.

Sectors such as IT have not cut down on their projections of intake in manpower. Info Edge offers a good opportunity for investors with a two-year horizon. It offers a play on the increasing popularity of online portals that offer free and paid services for a variety of activities such as job search, marriage and home finding.

Continuous improvements in resume registrations in naukri.com and ever expanding non-recruitment business through portals such as jeevansathi.comand 99 acres.com are key positives for the company.

At Rs 711, the share trades at 24 times its likely per share earnings for FY13. This is lower than the levels it has traded at historically. Besides, its financial growth rate and lack of listed Indian peer, justify its relatively higher valuations compared to the broader markets.

In FY12, Info Edge's revenues increased by 29.3 per cent over the previous fiscal to Rs 416.5 crore, while net profits improved by 46 per cent to Rs 122.6 crore.

That it has managed these figures in a slowing economy suggests that the company's business-mix helps it stay resilient.

RECRUITMENT BUSINESS STRONG

Info Edge's recruitment portal naukri.com has had a good run over the past few years; it did reasonably well even in the slowing economy last year. The total recruitment business accounts for over 80 per cent of the company's revenues.

In FY-12 alone, the number of resumes on the portal rose to 29 million, up 4 million from a year earlier. What is even more desirable is the fact that the number of resumes modified daily has increased from 72,000 to 91,000. This suggests continuous interest from existing pool of customers. Data from agencies such as Comscore, suggests that naukri is ahead of portals such as timesjobs and monsterindia with a traffic share of 60 per cent.

The IT (25 per cent of revenues), infrastructure (21 percent) and BFSI (5 per cent) sectors form the bulk of recruiters on the portal. Large software companies such as TCS and Cognizant have not announced any cut in their intakes for the year, which means that the perceived slowdown may be very company-specific in this sector.

In the infrastructure sector too, large companies such as L&T and BHEL are still in the hiring mode. The segment also witnesses high attrition, which is a good thing for job portals. Banks, especially public sector ones, are likely to continue hiring, given their talent crunch and exit or retirement in middle- and senior managements.

Notably, advertising for vacancies is rapidly vanishing from the print space in favour of online recruitment, with even public sector companies calling for positions though online ads and registrations. In this regard portals such as naukri would be beneficiaries.

OTHER SEGMENTS STEP UP

Apart from its recruitment business, Info Edge has witnessed increasing contribution from its other key segments such as marriage portal (jeevansathi.com) and its real-state focused Web site (99acres.com). From accounting for next to nothing a few years back, these segments now contribute to 20 per cent of revenues and have been growing at a faster clip than the overall company rate.

Jeevansathi.com has seen continuous increase in the number of profiles created. Marriage being a non-cyclical event is less susceptible to macro-economic shocks. In fact, the average amount realised per customer has risen 14.6 per cent in 2011-12 to Rs 3120.

In 99acres.com too, the number of paid transactions has increased rapidly. The company has recently launched meritnation.com, a Web site that caters exclusively to school-going children. It offers study material, NCERT solutions, and interactive learning solutions. While the business is at a nascent stage, it holds value given, Info Edge's ability to monetise its Web offerings.

THIS IS STOCK RECOMMENDED BY BUSINESSLINE.I SHARED THIS FOR MY CLIENTS

RISKS

The marriage and real-estate portal are loss-making, face heavy competition and are not the top players in those segments, unlike the recruitment portal. Any increase in advertising spends for greater brand visibility or cutting of prices to take on competition can hurt margins.