Leading Equity Brokerage Houses

Here is a segment-wise breakup of India’s leading equity brokerage houses.

The revenue streams of equity broking firms are undergoing changes, against the background of growing business opportunities and diversified financial services. The major sources of revenue from major players are tabulated below.

Equity Trading:
Brics Securities 85%
Ashika Stock Broking 85%
Motilal Oswal 80%
Arihant Capital Markets 79%
Dalal & Broacha 70%
A F N Langrana Shares 70%
K R Choksey 70%
Zen Securities 65%
Indiabulls 60%

Derivatives Trading:
India Advantage Securities 87%
Crimson Financial 80%
Dolat Capital 60%
Kantilal Chhaganlal 59%
Kunvarji Finstock 59%
R Wadiwala 43%
Angel Broking 43%

Margin Financing
Anand Rathi 8%
Indiabulls 7%
Reliance Money 6%
K R Choksey 4%
Motilal Oswal 3%

E-Broking – Online Trading Marketshare in India
Indiabulls Securities Limited 451,611 clients.
Reliance Money Limited 215678
Motilal Oswal Securities Limited 19065
Unicon Financial Intermediaries Private Limited 13787
Angel Broking Limited 11828
Asit C Mehta Investment Intermediates Limited 9748
SMC Global Securities Limited 7704
Anand Rathi Securities Limited 6793
Doha Brokerage & Financial services Limited 6400
Networth Stock Broking Limited 6120
Bonanza Portfolio Limited 2977
Arihant Capital Markets Limited 2726
Mansukh Securities & Finance Limited 2500
Emkay Share & Stock Brokers Limited 2147
SKI Capital Services Limited 2000
Alankit Assignments Limited 2000

Railway Budget Impact on Industry

We expect the steel industry to be positively impacted because of the significant capex initiatives laid down by the budget. The target for construction of broad gauge lines in 2008-09 is 3500 km (against 2300 km this year). Target for new lines is 350 km at an outlay of Rs.17 bn, gauge conversion – 2,150 km at a capex of Rs.25 bn, doubling of tracks – 1000 km at a capex of Rs.36 bn. The investments are to be directed towards developing the New Delhi, Chhatrapati Shivaji Terminus, Mumbai, Patna and Secunderabad railway stations (Rs.150 bn capex outlay on these stations), setting up diesel loco, electric loco and rail coach factory at an estimated cost of Rs.40 bn, and towards container trains, container depot and multi-modal logistics parks (Rs.20 bn).

Stainless Steel and Ferro Alloys to be the major beneficiaries.22.9 tons axle load stainless steel wagons will be manufactured from 2008-09 instead of manufacture of 20.3 tons axle load BCN and BOXN wagons.

The Railway Budget has proposed to set up on pilot project basis installation of fire detection, prevention and protection devices. Once this project is successful it would be implemented on all the coaches. This could translate into potential business of Rs.7 bn.

Nitin Fire protection is the leading player in this area and if the project is successful it would stand to benefit significantly.

Construction of the dedicated rail freight corridor to commence in FY09. Setting up terminals on railway land. Focus on port connectivity. Wagon leasing and investment policy. With a lot of thrust on increased freight traffic, availability of container depots near railways stations and commencement of work on dedicated freight corridor the Railway Budget is positive for companies like Concor and Gateway Distriparks.

Increased loading target of 200 MT from cement industry by 2011-12. No across the board increase in freight rates. Reduction in freight rate for fly ash by 14%.

Procurement of rolling stock. Indian Rail Bijli Company Ltd, a JV with NTPC to set up 1000 MW thermal power plant at Nabinagar, Bihar. MUTP Phase II to be started at a cost of Rs.50 bn, financed jointly by Railways and State Government of Maharashtra, with multi-lateral funding. Among likely beneficiaries would be Siemens India, which has received several orders for propulsion systems, traction motors and other electrical equipment under the “Mumbai Rail Vikas Corp”.

Overweight on HDFC Bank – HSBC + Deutsche

With the mega merger of HDFC Bank [HDBK] and Centurion Bank of Punjab, HSBC Equity research & Deutsche have maintained a BUY on HDFC Bank.

The share swap ratio of 1:29 translates into a 10% dilution on an expanded capital base of 361 million shares (of the merged entity) and values CBoP at INR9.97bn. Post merger, HDBK’s loan book will be bigger by 20%, its branch network larger by 52% and its employee base higher by 35%. Apart from having a pan India presence, the branch network of CboP should give HDBK a strong regional flavour, with more than 150 branches in Punjab and the northern belt of the country alone. (more…)

What does HDFC Bank + Centurion deal mean to you ?

This transaction is biased toward the strategic; scale – branch (45%+) and assets (19%+), a clear number two positioning in the market (50% larger than Axis), widening its geographic segment /customer spread (deep penetration in West and South India, more consumer credit and SME), and an enhanced platform to support its relatively increased growth momentum. Acquisition provides growth (8-12 months), branches (45% – but lower quality) and deeper market positioning – but is not transformational.

Swap ratio not yet announced, but on market pricing – appears expensive. Expect 6-7% earnings dilution. HDFC Bank paying high price, significant premium to its own high valuations, expensive on branch matrix too. (more…)

Best performing Sectors in Indian Economy

You are reading this first hereThis is one bit of very interesting data that our analyst pulled off and thought we share with all our readers here. If you are an investor using the Mutual Fund route, then very likely your fund managers has churned his portfolio depending on the table below. If you are wondering why your funds are under performing, then the reason is obvious, your Fund Manager failed to ride these sectors.

The data is being benchmarked against BSE 200 [Our recommended HDFC Top 200 Fund follows the same benchmark] (more…)

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