Archive for the ‘K R Choksey’ Category

KRC Market Flash Thursday, 17th April, 2008  

News Update:  TVS Motor to decide on price hikes by Apr-end

News Update: Bhuwalka Steel buys stake in Benaka Sponge Iron for Rs 100 mn

News Update: Parsvnath Developers launches Parsvnath Premium

 

FII activity for 16/04/08: Net Buyers of Rs. 211.03 Crs. in Index Futures, Net Buyers of Rs 961.82 in Index Options, Net Buyers of Rs 140.08 Crs. in Stock Futures and Net Buyers of Rs 37.93 Crs in Stock Options.

 

Opening Market Review: Markets are likely to be volatile with positive bias. Nifty (market) is strong above weak below: 4904; Sensex: 16286; Nifty Rest: 4934-4982; Supt: 4857-4827; Sensex Rest: 16372-16501; Supt: 16157-16070. Buying (Trading) opportunities exist in Ansal Infra, Axis Bank, Kotak Bank, EKC, BEML, Biocon, BRFL, Great offshore, IVRCL Infra. Cash buying in Sterlite Tech, TechM, Bharat Forge, Century Tex, GMR Infra, Jindal Vijaynagar, Hinduja Ventures. Nifty April Fut. strong above/weak below: 4904; Rest: 4934-4982; Support: 4861-4831.

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Written by K R Choksey

April 17th, 2008 at 1:56 am

Posted in K R Choksey

11.30AM, 17th April 2008 KRC Market Update  

11.30AM

Current News

  • TVS Motor to decide on price hikes by Apr-end

  • Bhuwalka Steel buys stake in Benaka Sponge Iron for Rs 100 mn

  •  Parsvnath Developers launches Parsvnath Premium

 

Sector / Company

MindTree Ltd is currently trading at Rs 464.80, up 13.52%

MindTree Ltd an IT and R&D services company, reported 37.3% rise in Q4 revenue, predominantly helped by growth in volume and billing rates. Net profit for the quarter rose 41.5% to Rs 34.70 crore, while revenue increased to Rs 217.80 crore.

On a stand alone basis, the company saw a 1% increase in pricing, but when consolidated with Purple Vision, it fell to 0.2%. MindTree bought Purple Vision, the Indian unit of French electronic design and manufacturing services company TES Services Solutions S.A., in November 2007.

For fiscal 2009, the company expects $228 million to $238 million in software revenue. Net profit is expected to be $31.7 million to $33.1 million.

The revenue from India increased to 8.9 % of total revenue, compared with 4.7% in the corresponding quarter last year. Revenue from US declined to 62.4% from 64.7%.

Parsvnath Developers Ltd is currently trading at Rs 213.75, up 3.34%

Parsvnath Developers has signed an agreement with Read More

Click Here to read the complete 11.30AM, 17th April 2008 Market Update by KR Choksey.

Click here to read all the Corporate News.

Click Here to View all the Mutual Fund News.

Click Here to register for FREE KRC Market Updates.

Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001
Phone:91-22-56338050 / 66965555. Fax: 5633 8060
Members: BSE & NSE
www.krchoksey.com
Email: customercare@krchoksey.com / eservices@krchoksey.com

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Written by K R Choksey

April 17th, 2008 at 1:51 am

Posted in KRC Market Updates

Grasim Industries Ltd. - KRC Stock Recommendation  

Grasim Industries Ltd.

Q3FY08 Result Update

Key Data

CMP Rs 2568.55

Date April 16th 2008

Sector Diversified

Face Value Rs.10

BSE Code 500300

52 Week H/L Rs 4074/ 2232

Market Cap Rs 23551.03 Cr

Investment Rationale

Grasim Industries Ltd. a dominant player in VSF (Viscose Staple Fibre) & cement businesses in the domestic market has posted a strong growth of 15.38 percent (Y-o-Y) in net sales to Rs 2629.93 crore during Q3 FY08. During the quarter, Cement division’s operating profit rose by 9.19percent while its VSF division reported higher revenues with better margins. The company has chalked out an extensive capex plan encompassing capacity expansion as well as modernization of its VSF and cement division. Barring cement and Textiles, the remaining 3 segments viz. VSF, Chemicals and Sponge Iron have reported a very good performance. Rising international prices of VSF helped Grasim to counter high fuel and freight costs at is cement division. Its combined Net Sales were up by 15.38 percent although its cement division posted an increase of just 11.2 percent. Its EBITDA during the same period grew by 28.85 percent. Due to the increasing power and fuel cost and continuous government pressure on the cement prices, our short term outlook on the company is a bit slackened. But looking forward, the prices are expected to calm down mainly because of huge capacity expansion plans.

Key Developments:

Cement capacity expansion

The share of blended cement increased from 61percent to 66percent. 13 RMC plants were commissioned during the year. Higher realization during the quarter was set off by the steep hike in fuel cost and increased freight cost, which impacted margins. The company’s aggregate cement capacity (including that of its subsidiaries) will stand augmented by 17 million tonnes at 47 million tonnes upon completion of all expansions. Besides, both the company and its subsidiary are setting up ready mix concrete plants at various locations in the country. The additional capacity of around 90 million tonnes, as announced by the industry, over the 3-year period FY08 to FY10, could result in a surplus scenario, affecting realisation from end-FY09. Rising energy prices would lead to increased costs. However, the addition of captive power plants at various locations will help contain this impact.

Financial Performance:

Net sales up by 15.38 percent on the back of robust performance of VSF and

Sponge Iron segment

For Q3FY07 the company has posted net sales of Rs 2629.93 crore thus registering a growth of 15.38 percent. This was primarily due to the increased sales revenue in the VSF segment by 23.28 percent and 25.18 percent increase in the Sponge Iron segment. The EBITDA for the quarter was higher by 28.85 percent to reach Rs. 921.36 crore. The company posted a 19 percent increase in their consolidated revenues to Rs 4358 crore from 3668 crore. Its Chemical segment also posted an increase in the revenue by 51.82 percent to reach 116.72 crore. The Textiles segment of the Company saw a negative growth rate mainly due to appreciation of rupee.

Valuations:

At current market price of Rs 2568.55, Grasim is quoting at a PER of 15.59x. On EV/Sales and on EV/ EBIDT basis it is quoting at 2.62x and 8.39x of its Dec’07 TTM earnings respectively.

Click Here for In-depth Grasim Industries Ltd. research report by KR Choksey, company profile along with stock recommendations, Grasim Industries Ltd. target price and for making informed investment decisions.

Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001
Phone: 91-22-56338050  / 66965555. Fax: 5633 8060
Members: BSE & NSE
www.krchoksey.com
Email: customercare@krchoksey.com / eservices@krchoksey.com

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Written by K R Choksey

April 16th, 2008 at 12:40 pm

Posted in Between The Lines

16thth April 2008 KRC Post Market Analysis  

Market Commentary 
 

 

No. of  Scrips

Value (Crs.)

Advances

836

10382

Declines

379

4931

Unchanged

22

1

Total

1237

15314

Market Activity: Share indices rose over 1% at the open helped by positive U.S. and Asian markets.  

At 10.10AM, Sensex was at 16356.85, up 203.19 or 1.3%. Nifty was at 4935.45, up 55.80 points or 1.1%. 

All BSE sector indices gained, led by technology and pharmaceutical shares. HCL Technologies, up 5%, led the CNX IT index up 3% after its consolidated net profit of Rs 3.42 bn beat analysts’ estimates of Rs 3.16 bn. The stock was the top Nifty gainer. Ranbaxy Laboratories rose 2%, while Dr. Reddy’s Laboratories was up 1%. Hindustan Unilever, down 1%, was the sole laggard on Nifty
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Written by K R Choksey

April 16th, 2008 at 12:21 pm

Posted in Good Evening KRC

16th April 2008 KRC Market Update  

11.30 a.m.

Current News

  • HCL Tech: Impact from client budget freeze unlikely to spill over

  • L&T bags Bombay Dyeing order worth Rs 20 bn

  • Aztecsoft surged 13% to Rs 75 after the company reported 44% sequential rise in Jan-Mar net profit to Rs 31.5 mn while revenue rose 8.5% to Rs 687.1 mn

Sector/Company

Nicholas Piramal is currently trading at Rs 330 up 3%

Nicholas Piramal India and Khandelwal Laboratories announced signing of a definitive agreement for purchase of Anafortan and CEFI Brand Groups of K-Lab by NPIL for a total consideration of Rs 1,160 million. As a part of the agreement, K-Lab has agreed to provide NPIL with certain patents’ use and non-compete assurances for Cefixime and Camylofin based drugs. Anafortan and CEFI Groups had Revenues of Rs 491 million and EBIDTA of Rs 207 million for the financial year ended March 2008.

CEFI offers unique therapeutic value to patients; it is marketed in nine dosage forms, including CEFI-XL and CEFI-OD, which are based on extended release and once-a-day drug delivery systems. CEFI Group had Revenues of Rs 262 million for the year ended March 31, 2008. As per ORG-IMS, the Cefixime-based drugs segment is worth Rs 6,246 million and is growing at 25.4% on MAT-FEB-08 basis. Anafortan Group consists of six Camylofin-based formulations in pure and combination forms. Anafortan had Revenues of Rs 229 million for the year ended March, 2008. As per ORG-IMS, Camylofin-based drugs market has grown at 13.5% on MAT-FEB-08 basis.

 

 

ZEE Entertainment is currently the top looser in nifty trading at Rs 219.50 down 4.70%

The Advertisement revenue was Rs 246.6 crore for the fourth quarter ended March 31 2008, an increase of 33.4% as compared to the corresponding period last fiscal. For the full year FY2008, advertising revenues went up 32.8% to Rs 934.2 crore. Subscription revenue was Rs 207.1 crore for the fourth quarter ended March 31 2008, an increase of 12% as compared to the corresponding period last fiscal. For the full year FY2008, subscription revenues went up 10.2% to Rs 732.6 crore.The revenues from DTH increased to Rs 18.75 crore for the fourth quarter, from Rs 17.55 crore in the third quarter of the current fiscal.

The Operating profit was Rs 130.28 crore, a growth of 37% compared to corresponding quarter of last fiscal. The operating profit growth has been impacted due to higher programming & marketing costs of newly launched Zee Next.

Finance expenses are Rs 18.4 crore in the fourth quarter and include losses Rs.11.56 crore on account of Forex derivative transaction as against Rs.5.94 crore of losses during corresponding period last fiscal.

Index

Current Value

Change (Pts)

Change (%)

SENSEX

16,345.97

192.31

1.19

S&P CNX NIFTY

4,937.90

58.25

1.19

MIDCAP

6,720.44

116.02

1.76

SMLCAP

8,358.02

153.63

1.87

BSE-100

8,655.61

106.06

1.24

BSE-200

2,030.40

26.43

1.32

Technical Analysis

SENSEX (INTRADAY) Time: 11.30AM

Market has broken 1 st support at 16320 (10.45) and then given 1 st intraday low at 16238(which is now intraday support level)

After 1 st considerable intraday low market has given recovery and sustain above 16300 levels.

Market is showing range bound movement upside; consider resistance level at 16380 for further rally.

Market Activity as on 16th April 2008 at 11.30AM

Most Active Calls

Instrument Type

Symbol

Expiry

Date

Option

Type

Strike

Price

No of

Contracts

Traded

Contract

Value

(Rs. lakhs)

Last

Traded

Price

Open

Interest

OPTIDX

NIFTY

24-Apr-08

CE

5000

19494

49179.37

45.25

3680050

OPTIDX

NIFTY

24-Apr-08

CE

4900

15081

37616.76

91

2254750

OPTIDX

NIFTY

24-Apr-08

CE

4800

6721

16656.22

161.1

2343000

OPTIDX

NIFTY

29-May-08

CE

5000

3829

9857.51

150

475400

OPTIDX

NIFTY

24-Apr-08

CE

5000

19494

49179.37

45.25

3680050

Most Active Puts

Instrument

Type

Symbol

Expiry

Date

Option

Type

Strike

Price

No of

Contracts

Traded

Contract

Value

(Rs. lakhs)

Last Traded Price

Open

Interest

OPTIDX

NIFTY

24-Apr-08

PE

4900

13219

32810.29

64

1973850

OPTIDX

NIFTY

24-Apr-08

PE

4800

10603

25627.93

35.55

2765150

OPTIDX

NIFTY

24-Apr-08

PE

5000

8366

21389.31

116

902000

OPTIDX

NIFTY

24-Apr-08

PE

4700

6851

16174.7

21

3011800

OPTIDX

NIFTY

24-Apr-08

PE

4600

3616

8339.58

13.5

1996150

Top Gainers

Symbol

Open Price

High Price

Low Price

LTP

Prev Close

% Change

Total

trd qty

HCLTECH

250

264.9

249.25

263

245

7.35

849020

SATYAMCOMP

461

481.75

455

481.5

451.25

6.7

1844067

INFOSYSTCH

1525

1615

1520

1604

1510.4

6.2

1789938

CAIRN

248

256.1

247.1

255

245

4.08

2625424

REL

1315

1368

1315

1349

1301.35

3.66

934320

Top Losers

Symbol

Open Price

High Price

Low Price

LTP

Prev Close

% Change

Total

trd qty

ZEEL

233.95

233.95

218.15

219.95

230.15

-4.43

950749

ABB

1174

1185

1138.55

1142.8

1161.95

-1.65

57839

AMBUJACEM

116

117.45

113.4

114.1

115.9

-1.55

559368

DRREDDY

616.5

624.9

603.35

606.4

615.35

-1.45

113962

M&M

625.05

633

614.65

617

623.45

-1.03

143664

Most Active Underlyings

Symbol

No of Contracts Traded

Contract Value (Rs.lakhs)

NIFTY

309317

763463.02

RELIANCE

35726

70776.21

RPL

19665

63675.7

ORCHIDCHEM

15699

48109.43

RNRL

23322

46060.67

10.30 a.m.

Current News

  • Deccan Chronicle launches financial daily in Hyderabad, Chennai

  • REL shortlisted for Amritsar, Udaipur airport city side work

  • Govt says export ban on cement not applicable for sale to SEZs

  • Micro Tech to offer mobile application to MTNL users

Sector / Company

Larsen & Turbo is currently trading at Rs 2,871 up 2.33%.

Larsen & Turbo and the Tamil Nadu Government have entered into an agreement to set up a Rs 3,068 crore integrated ship building and port facility to the north of Chennai. L & T has commenced shipbuilding at its Hazira Works and also scouting for a suitable site in India to set up a world-class facility for shipbuilding and repair the same. Company also concentrate on the Defence, Nuclear Power and Aerospace sectors which show the potential and promises and L & T plans to expand its presence in the sector of construction and electrification for the railways and L&T investing Rs 2,500 crore for expansion in Shipbuilding, Manpower constraints and others. L&T have super-critical power plants, ranging between 500 MW-1000 MW.

HCL Tech Q3 net revenue up 23.3%. It is currently trading at Rs 257.70 up 5.18%.

India’s fifth largest software exporter HCL Technologies posted a 3.2% year-on-year rise in its Q3 net income at Rs 342.5 crore on a consolidated basis, even as the company clinched better-than-expected growth in the US market.

In rupee terms, the revenue at Rs 1,944.8 crore was up 23.3% year-on-year and 7.1% on a sequential basis.

The net profit was impacted by foreign exchange losses worth Rs 27.1 crore, compared with a gain of Rs 41.8 crore last year, and a gain of Rs 5.8 crore during the second quarter ended December 2007.

HCL’s quarterly EDITDA margins rose to 22.3% from 21.4% in Q2FY07, but lower than 23.3% a year ago.

Market Trend

Index

Current Value

Change (Pts)

Change (%)

SENSEX

16,368.03

214.37

1.33

S&P CNX NIFTY

4,937.10

57.45

1.18

MIDCAP

6,731.29

126.87

1.92

SMLCAP

8,365.41

161.02

1.96

BSE-100

8,668.62

119.07

1.39

BSE-200

2,033.40

29.43

1.47

Technical Analysis

SENSEX (INTRADAY) Time: 10.30AM

With Positive global clue market has given flat opening and than with good rally market has given high at 16414(time 10.19).

With first resistance at 16430, market has 1 st support level at 16320.

Market Activity as on 16th April 2008 at 10.30AM

Most Active Calls

Instrument Type

Symbol

Expiry

Date

Option

Type

Strike

Price

No of

Contracts

Traded

Contract

Value

(Rs. lakhs)

Last

Traded

Price

Open

Interest

OPTIDX

NIFTY

24-Apr-08

CE

5000

11100

28024.28

44

3508450

OPTIDX

NIFTY

24-Apr-08

CE

4900

7645

19092.55

90.95

2173400

OPTIDX

NIFTY

24-Apr-08

CE

4800

3215

7981

162

2367900

OPTIDX

NIFTY

24-Apr-08

CE

5100

1623

4155.82

19

1055150

OPTIDX

NIFTY

24-Apr-08

CE

4700

940

2329.57

250

1087400

Most Active Puts

Instrument

Type

Symbol

Expiry

Date

Option

Type

Strike

Price

No of

Contracts

Traded

Contract

Value

(Rs. lakhs)

Last Traded Price

Open

Interest

OPTIDX

NIFTY

24-Apr-08

PE

5000

6769

17296.15

117

875000

OPTIDX

NIFTY

24-Apr-08

PE

4900

6536

16208.82

64.8

1962750

OPTIDX

NIFTY

24-Apr-08

PE

4800

5748

13886.16

34.95

2751000

OPTIDX

NIFTY

24-Apr-08

PE

4700

3747

8843.69

21.5

2959500

OPTIDX

NIFTY

24-Apr-08

PE

4600

2580

5949.61

12.8

1984550

9.30 a.m. Pre Opening

Key Indices:

Indices were down 1% with prospects of sharper losses reined by a relatively positive guidance for FY09 by Infosys Technologies. Prices were expected to tumble, as the markets opened after an extended weekend holiday, due to losses on Wall Street and Asia.

Indices

Close

Advance Decline Ratio

Support 1

Support 2

Resistance 1

Resistance 2

Direction

Sensex

16,153.66

25 : 5

15,734.64

15,315.62

16,411.07

16,668.48

Nifty

4,879.65

40 : 10

4,752.93

4,626.22

4,961.73

5,043.82

Nifty Future

4,915.35

-

4,747.90

4,580.45

5,009.90

5,104.45

Outlook:

Markets are likely to be volatile with positive bias

Medium term sideways and long term remains positive.

KEY Indicators:

FII- Equity

Rs Cr for 15thApril

Mutual Fund.

Rs Cr for 12th April

Crude Oil $

INR/USD

US Markets

Asian Markets

(31.30)

NA

113.47

39.96

Positive

Positive

Market News:

  • ITC to invest Rs 3 bn for Bengal food processing unit.

  • Indraprastha aims to double piped gas users to 100,000 FY09

  • Four Soft gets order from Colvan Netherlands

  • Kotak Mahindra Bank forays into credit card business

  • Petronet in advanced talks to buy LNG from Gorgon, Australia

  • Larsen & Toubro gets orders worth Rs 20 bn

Click here to read all the Corporate News.

Click Here to View all the Mutual Fund News.

Click Here to register for FREE KRC Market Updates.

Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001
Phone:91-22-56338050 / 66965555. Fax: 5633 8060
Members: BSE & NSE
www.krchoksey.com
Email: customercare@krchoksey.com / eservices@krchoksey.com

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Written by K R Choksey

April 16th, 2008 at 12:07 pm

Posted in KRC Market Updates

15thth April 2008 KRC Post Market Analysis  

Market Commentary

Market Activity: Share indices were down 1% with prospects of sharper losses reined by a relatively positive guidance for FY09 by Infosys Technologies. Prices were expected to tumble, as the markets opened after an extended weekend holiday, due to losses on Wall Street and Asia. Bank and metal shares were among the worst hit, with HDFC Bank and ICICI Bank down around 3% each. SAIL and Tata Steel were down 3% and 2%, respectively.

At 10.06AM, Sensex was at 15635.70, down 171.94 points or 1.1%. Nifty was at 4728.90, down 48.90 points or 1.1%

Infosys Technologies, up nearly 3%, was the top Nifty gainer after it said it sees 2008-09 (Apr-Mar) earnings per share at Rs 92.32-93.92. Other gainers included Ranbaxy Laboratories and Satyam Computer Services, up 1% each. HCL Technologies also rose 1% ahead of its Jan-Mar earnings today.

In the mid trading session, indices extended gains to rise over 2% led by surge in the technology sector after Infosys Technologies announced its Jan-Mar earnings. The market was down 1% in early trade. Short covering and firm opening in European markets helped. At 1.10PM., Sensex was at 16153.06, up 345.42 or 2.2%. Nifty was at 4887.55, up 109.75 points or 2.3%. CNX IT index was up 6%. Infosys Technologies and Tata Consultancy Services were up over 7% each, and Wipro rose 6%. Ranbaxy Laboratories surged 9% on entering into a settlement pact with AstraZeneca over the generic version of anti-ulcer drug Nexium, and amid talk it may launch an open offer for Orchid Chemicals. HDFC Bank down 2% was the worst hit on Nifty, while Ambuja Cements and Housing Development Finance Corp were down 1% each.

Share indices ended up 2% after bellwether Infosys Technologies posted Jan-Mar earnings broadly in line with market expectations. Infosys’ earnings triggered short covering. Gains in Europe and Asian markets also helped. Sensex ended at 16153.66, up 346.02 points, or 2.2%. Nifty closed at 4879.65, up 101.85 points, or 2.1%. Market had risen 3% earlier in the session. Shares of information technology companies were top gainers on Nifty. Infosys Technologies ended up over 6%, Tata Consultancy Services gained 8%, and Wipro rose 6%. HCL Technologies ended 7.7% up at Rs 248.10. Ranbaxy Laboratories, up 8.7% at Rs 483.50, was the top Nifty gainer after the company entered into a settlement pact with AstraZeneca over the genetic version of anti-ulcer drug Nexium. Zee Entertainment, down 4% at Rs 230.2 was the worst hit in Nifty. The company’s Jan-Mar net rose 49.3% to Rs 1.04 bn

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Written by K R Choksey

April 15th, 2008 at 12:28 pm

Posted in Good Evening KRC

Indian Oil Corporation - KRC Stock Recommendation  

Indian Oil Corporation

Q3FY08 Update

Key Data

CMP Rs 460.15

Date April 15th 2008

Sector Refineries

Face Value Rs.10

BSE Code 530965

52 Week H/L Rs 809.9/ 355

Market Cap Rs 54867 Cr

Investment Rationale

Indian Oil Corporation Ltd (IOC) reported a 16.7 per cent growth in net profit for the third quarter of the FY 08. As a result, IOC clocked a net profit of Rs2019 crore as compared to a profit of Rs 1,792 crore during the corresponding quarter in the previous year. The company has outlined a capex plan of Rs. 51030 crore for the period upto March 2012. Also, the company is planning transportation of crude through pipeline from the upcoming SPM at Paradip in Orissa to solve the age-old crude availability constraints in Assam, and expand capacities of Guwahati refinery and Bongai gaon Refinery and Petrochemical Ltd. IOC has signed gas agreements with Petronet LNG for supply of 1.5 MMTPA of gas plus additional 0.75 MMTPA regassified LNG by 2009-10. IOC has also sold 1.50 million tons re-gassified LNG, including captive consumption at Gujarat and Mathura refineries and spot LNG sold to fertilizer and power sectors. The major projects in line are Naphtha Cracker which is under implementation at Panipat with an estimated cost of Rs.14439 crore and expected to be commissioned by 2009 and Integrated refinery and petrochemicals complex at Paradip with an estimated cost of Rs.25646 crore and expected to be commissioned by 2011-12.

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Written by K R Choksey

April 15th, 2008 at 12:17 pm

Posted in Between The Lines

Market Update upto 2.30pm By KRC  

2.30PM

Current News

  • Kotak Mahindra Bank forays into credit card business

  • ITC to invest Rs 3 bn for Bengal food processing unit.

  • Whirlpool India: To invest $40-45 mn on pdt development in 3 yr

  • Indraprastha aims to double piped gas users to 100,000 FY09

  • Surana Telecom shares were locked at 20% upper circuit of Rs 32.85 after the company said it would mull a share buyback on Apr 22.

  • L&T head says signed shipyard JV with Tamil Nadu govt arm

Sector / Company

Yes Bank, the private sector bank is eyeing two private sector banks for acquisition. It is currently trading at 163.50 up 1.52% with a strong support 156 and a resistance of 175

The new generation private sector bank is planning to raise $300 million (about Rs 1,200 crore) in Tier-I and Tier-II structures by December 2008 for its expansion plans. The bank is aiming for a 250-strong branch network, by September 2010. At present, the bank has 67 branches across the country

The banking industry grapevine feels Karnataka Bank, Karur Vysya Bank and Kerala-based Catholic Syrian Bank, Federal Bank and South Indian Bank could be potential acquisition targets.

Yes Bank provides banking services to large corporate and institutional clients, small and medium sized businesses and retails customers. The bank proposes to launch its asset reconstruction company in the next few months and plans to enter the retail broking and asset management businesses over the next 18-24-months.

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Written by K R Choksey

April 15th, 2008 at 12:09 pm

Posted in KRC Market Updates

15th April 2008 KRC Market Update  

9.30 a.m. Pre Opening

US Market starts week with losses

US Market ended the day with losses today, Monday, 14 April, 2008 after financial sector weighed on investor sentiments. Traders found it hard to digest Wachovia Securities’ losses as they continued to grapple under General Electric’s dismal results. Overall, only three sectors finished in positive territory. Energy staged the largest advance.

Stocks in News

Infosys results to dictate trend

The key event to watch out for today is the IT bellwether Infosys Technologies’ Q4 March 2008 earnings. A depreciation of the rupee against the dollar is likely to drive good results from the IT sector on a sequential basis in Q4 March 2008 over Q3 December 2007, though the focus here is on guidance for the year ending March 2009.

On a consolidated basis, Infosys today reported 1.46% rise in net profit to Rs 1249 crore on a 6.34% growth in revenue to Rs 4542 crore in Q4 March 2008 over Q3 December 2007. The operating profit rose 6.17% to Rs 1478 crore in Q4 March 2008 over Q3 December 2007.

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10.30 a.m. Key indices trade lower; Infy gains after Q4 results

The key indices opened lower after an extended weekend. But markets soon pared losses, led by gains in key IT stocks after sector bellwether Infosys declared its quarterly results. Banking and capital goods stocks edged lower. Asian stocks, which opened before Indian markets, were mixed.

BSE Sensex was down 40.76 points or 0.29% at 15,762.42. The Sensex slipped 234.61 points at day’s low of 15,573.03, hit in early trade.

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Written by K R Choksey

April 15th, 2008 at 2:42 am

Posted in KRC Market Updates

Varun Shipping Ltd. - KRC Stock Recommendation  

Varun Shipping Ltd.

Q3FY08 Result Update

Key Data

CMP Rs 73.7

Date April 11th 2008

Sector Shipping

Face Value Rs.10

BSE Code 500465

52 Week H/L Rs 110.5/ 52.5

Market Cap Rs 1105.5 Cr

Investment Rationale

Capacity addition to drive growth

Company plans to spend capex of $ 400 mn in 2008 mainly for expansion and modernization of its fleet. VSCL has acquired its 12th LPG carrier last year and its 5th Anchor Handling and Towing Supply Vessel (AHTS). It will be the most powerful AHTS vessel under Indian flag.

Presence in Offshore business to boost margins.

VSCL offers 2 AHTS for charter to oil and gas companies operating offshore last year. Both AHTS are deployed on long term charters with ONGC. Contribution from offshore business has been significant and this has been witnessed in the results this quarter. The 5th AHTS will be used for deep sea oil exploration activity going in areas like North Sea, KG basin and Atlantic Ocean off the coasts of Nigeria, Brazil and Mexico.

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Written by K R Choksey

April 11th, 2008 at 12:31 pm

Posted in Between The Lines