15 Nov 2010 Daily Recommendations

15 Nov 2010 Morning Market Updates  08:45

Today's Recommendations :Buy Cairn sl 328 T 336
Buy Cipla sl 325 Bounceback expected
Buy DLF sl 323 T 336
Buy Essaroil sl 138 T 145 Bounceback expected
Buy HDFC sl 708 T 730
Buy Herohonda sl 1818 T 1840
Buy Idea sl 68.5 T 73 P

Sell Aptecht sl 159 T 153
Sell Auropharma Bel 1258 sl 1272 T 1240
Sell Axisbank sl 1516 T 1466
Sell Canbk sl 798 T 767
Sell HDFCBank sl 2336 T 2284 P
Sell Hindunilvr Bel 300 sl 302.5 T 294
Sell ICICIBank sl 1215 T 1177 P
Sell Infosystch sl 3024 T 2965 P
Sell Tatasteel sl 616 T 593

Results Today: Satyam, Shree Renuka, ABG Shipyard, Gitanjali Gems, Kohinoor Foods
Power grid FPO priced at Rs 90 (upper end of band 85-90)



-Power Grid total subscription at 14.88 times (QIBs: 18.5x, NIIs: 28.8x, Retail: 3.85x)


Unitech Q2FY11(QoQ) (cr - crore, vs - versus)


* Revenues: Rs 644 cr vs Rs 828.67 cr (Expectation of Rs 854 cr)


* EBIDTA: Rs 252.8 cr vs Rs 285 cr(expectation of Rs 287.5 cr)


* EBIDTA margin at 39.22% vs 34.39% (Expectation of 33.63%)


* Net Profit: Rs 173.76 cr vs Rs 180 cr (Expectation of Rs 186.78 cr)

IOC Q2


-Net profit at Rs 5,294 cr vs loss of Rs 3,388.4 cr (QoQ)


-Net sales at Rs 69,336 cr vs Rs 71,672.66 cr (QoQ)


India Cements Q2FY11 YoY


-Revenue down 15% to Rs 842 cr vs Rs 994 cr


-Net loss Rs 33.6 cr vs profit of Rs 137 cr


-OPM 3.6% vs 30%


Reliance Communications Q2FY11 (QoQ)


* Revenues: Rs 5118 cr vs Rs 5109 cr (expectation of Rs 5226.7 cr)


* EBIDTA: Rs 1660 cr vs Rs 1631.8 cr (expectation of Rs 1581.3 cr)


* EBIDTA margin at 32.43% vs 31.94%


* Financial charges at Rs 280 cr vs Rs 440 cr


* Net Profit: Rs 446 cr vs Rs 251 cr (expectation of Rs 371.74 cr)


* Net debt to equity at 0.95 x vs 0.73x


* Wireless minutes flat at 94.6 B vs 94.4 B(up 0.21%)


Deccan Chronicle Q2FY11 YoY


-Revenues down 6% to Rs 236 cr vs Rs 250 cr


-OPM 49.8% vs 55%


-PAT Rs 82.6 cr vs Rs 99.9 cr


-Deccan Chronicle board approves share buyback; buyback price up to Rs 180/sh


-Not exceeding Rs 270 cr


IVRCL Infra Q2: From NSE


-Net profit at Rs 23.3 cr vs Rs 48.8 cr (YoY)


-Net sales at Rs 1,050.2 cr vs Rs 1,213.8 cr (YoY)


Reliance Capital Q2FY11


-Revenue down 11% to Rs 1300 cr vs Rs 1466 cr


-PAT down 28% to Rs 112 cr vs Rs 155 cr


-Segment wise - except for Asset Management all segments decline


Finance & Investments revenues down 17% to Rs 293 cr


General Insurance down 10% to Rs 483 cr


Alert: PBT loss in GI at Rs 28 cr vs 11 lakh profit YoY but loss down 28% QoQ


Commercial Finance down 9% to Rs 312 cr


Asset Management up 9% to Rs 163 cr


Management says


-Revenue fall mainly due to lower capital gains and insurance revenue


-Total assets Rs 30,094 cr, up 18%


-Investment in listed equities Rs 1589 cr or USD 354 million


Gammon India Q2


-Net sales at Rs 1,179.8 cr vs Rs 937.5 cr (YoY)


-Net profit at Rs 24 cr vs Rs 44.1 cr (YoY)


Tata Steel Q2FY11 Consolidated QoQ


* Steel deliveries lower 1% QoQ to 5.82 MT


* Lower deliveries at European operations were largely made up by higher deliveries from Tata Steel India & Tata Steel Thailand


* Revenues: Rs 28646.19 cr vs Rs 27194.8 cr(expectation of Rs 26911.88 cr)


* EBIDTA: Rs 4497 cr vs Rs 4527 cr (Adjusted EBIDTA of Rs 3870 cr vs expectation of Rs 3481.7 cr)


* Overall EBIDTA/t at $ 144.3 vs $ 171.2


* EBIDTA margin: 13.5% vs 16.64%


* Net Profit: Rs 1978.81 cr vs Rs 1825.26 cr(Expectation of Rs 1421.02 cr ex gains of stake sale)


YoY


* Revenues: Rs 28646.19 cr vs Rs 25395.04 cr


* EBIDTA: Rs 4497 cr vs Rs 371.8 cr


* Net Profit of Rs 1978.81 cr vs net loss of Rs 2707.25 cr


Reliance Power Q2


-Cons net profit up 20.2% at Rs 234.80 cr (QoQ)


-Cons net sales up 21.1% at Rs 168.7 cr (QoQ)


Reliance Infrastructure Q2FY11


-EPS Rs 14.5 and 1HFY11 EPS Rs 29.6


Q2FY11 YoY Consolidated


-Revenue up 2% to Rs 4042 cr vs Rs 3974 cr


-OPM 15.3% vs 9%


-PAT Rs 360 cr vs Rs 325 cr up 11%


-OPM Expands: Total expenditure down 5% to Rs 3425 cr and EBITDA up 71% to Rs 617.2 cr


Reliance infra says executing 25 infra projects worth Rs 40,000 crore


HPCL Q2


-Net sales at Rs 30,709.7 cr vs Rs 24,456.6 cr (YoY)


-Net profit at Rs 2,089.6 cr vs net loss of Rs 136.7 cr (YoY)


BEML Q2:


-Net sales at Rs 509.2 cr vs Rs 483.3 cr (YoY)


-Net profit at Rs 14.7 cr vs Rs 13.6 cr (YoY)


Balrampur Chini Q4


-Net sales at Rs 508.3 cr vs Rs 378.9 cr


-Loss at Rs 78.3 cr vs profit of Rs 42.7 cr


Sterling Biotech Q3



-Net sales at Rs 409.8 cr vs Rs 362.6 cr (YoY)


-Net profit at Rs 30.6 cr vs Rs 41 cr (YoY)
Wockhardt Q2FY11 YoY



-Revenue up 2% to Rs 940 cr vs Rs 922.6 cr


-EBITDA up 21% to Rs 219 cr vs Rs 182 cr


-OPM 23.4% vs 20%


-Net Loss Rs 96.6 cr vs loss of Rs 54.2 cr


-Interest costs up 18% to Rs 56.4 cr


-Forex Loss Rs 21.12 cr vs Rs 3.52 cr


-Exceptional Loss of Rs 202 cr vs Rs 137 cr


-Rs 197 cr of exceptional pertains to settlement of Loan & disputed derivative liabilities


IL&FS Q2


-Cons net profit at Rs 111 cr


-Cons net sales at Rs 883 cr


Tata Power Q2FY11 Consolidated


-Revenue up 1% to Rs 4809 cr vs Rs 4753 cr


-OPM 23.6% vs 20%


-PAT Rs 672.5 cr vs Rs 367.7 cr, up 83%


-Forex gain Rs 220 cr Rs 28.7 cr


Segment Break up


-Power Revenues Rs 2992 cr vs Rs 3198 cr


-Coal Revenues Rs 1474 cr vs Rs 1379 cr


-Others Revenues Rs 389 cr vs Rs 250 cr


-EBITDA up 19% to Rs 1137 cr


Ispat Ind Q2


-Net loss of Rs 332 cr vs loss of Rs 79.4 cr


-Net sales at Rs 2,155 cr vs Rs 2,032 cr


DEN Networks –Good numbers - Q2FY11 YoY Consolidated


-Revenue up 13% to Rs 253 cr vs Rs 223.7 cr


-OPM 12.5% vs 8%


-PAT Rs 10.5 cr vs Rs 2.14 cr


-Growth in topline and EBITDA results in higher PAT


-EBITDA Rs 31.8 cr vs Rs 18.3 cr ---up 74%


-Other Income Rs 2.8 cr vs Rs 42 lakhs


-Interest costs flat at Rs 4.4 cr vs Rs 4.9 cr


Elder Pharma Q2FY11 YoY Consolidated


-Revenues up 21% to Rs 210 cr vs Rs 174 cr


-OPM 19.9% vs 17%


-PAT Rs 13.8 cr vs Rs 9.29 cr up 49%


-Exceptional of Rs 1.38 cr on forex loss


-Interest costs Rs 14.92 cr vs Rs 14.5 cr


Assam Co Q2


-PAT at Rs 33.4 cr vs Rs 28.5 cr


CDR Update


-As per CDR company has issued the following to various banks in the Q:


*Optionally convertible cumulative redeemable shares worth Rs 28 lakh


*OCCRPS have the option to convert from July 2016


*And non convertible cumulative redeemable pref shares worth Rs 32.5 cr


*NCRPS Redeemable in 2018


-Outstanding Liabilities are Being Restructured under CDR


-Documents have been executed Under the Scheme of Master Restructuring Agreement


Alert : CDR Covers the FCCB Liabilities and Crystallized Derivatives / hedging Liabilities


Reliance Power allots shares to RNRL shareholders


-RNRL shareholders get 1 share of Reliance Power for every 4 shares of RNRL


-80% of RNRL shareholders got shares free on demerger from RIL


-Reliance Power is world's largest shareholder family with about 5 million holders


Tulip Tele Says


-Will sell our stake along with Qualcomm in BWA Foray


-Always knew Qualcomm would sell stake to an operator


-Assuming GTL will also sell stake along with Qualcomm


-Partnership with Qualcomm for financial interest


-Partnership with Qualcomm can help in accessing technology


CNBC-TV18 alert


-Qualcomm won BWA licenses in 4 circles


-Tulip Tele & Global Holdings hold 13% each in Qualcomm BWA


-Assam company approves Demerger of Borboorah Tea Estate of the Company and the transfer of the tea estate to Camellia Cha Bar Ltd., a subsidiary Company of the Company.


-Adanis face laundering charges: ET


-Reliance Power gets nod to divest 26 million tonne coal from Tilaiya to other projects: BS


-Sical Logistics: Coffee baron, Siddhartha of Café Coffee Day bought 10% on Friday at Rs 80/sh via Tanglian Retail, board also allots 160.8 lakh shares Tanglin Retail at Rs 76/sh, Tanglin’s stake to go to 40% from 10% triggering open offer ((Rajeev Chandrashekhar had bought 13.3% stake few days earlier))


FIIs were net sellers to the tune of Rs 321 crore in F&O. FIIs were net sellers of Rs 2000 crore in Index and Stock Futures on Friday. Total Futures open interest (OI) was down by Rs 2119 crore while total Options OI up by Rs 6406 crore.
 
Nifty Open Interest PCR was down to 1.13 from 1.26. Highest OI outstanding shifted from 6500 call (69.4 lakh) to 6300 call (88.9 lakh). Nifty November 6100 Call added 29 lakh shares in Open Interest.



Fresh shorts and cash based selling was seen Shree Renuka in Unitech. Shree Renuka tumbled 11%; its OI was up 12% and delivery volume jumped at 1.09 crore shares versus 31.8 lakh shares.


Unitech fell 5.8%; its OI was up 8.4% and delivery volume shot up to 1.1 crore shares versus 38.8 lakh.


Fresh shorts were seen in Alok Industries; the stock fell 7.8%. Its OI was up 17.2% and delivery volume rose to 1.39 crore shares versus 1.32 crore shares.


Speculative shorts were seen in Educomp and the stock tumbled 9%. Its OI was up 10%.


Unwinding was seen in Jaiprakash Associates and the stock was down 4%. Its OI fell 5% and delivery volume declined at 30 lakh shares versus 35 lakh shares.

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