SBI Ties up with MotiLal Oswal for Internet Trading.
Thursday, November 23, 2006
India's Largest bank, the State Bank of India has tied-up with MotiLal Oswal Securities to provide online trading and investment solutions to SBI customers throughout India. SBI is the first state owned bank to venture into online trading.Motilal Oswal already operates on a PAN India basis for retail trading and investment advise to small and high networth individual investors. Earlier this year, Motilal Oswal bought Cochin based Peninsular Capital Markets for Rs50 crores.
Immediately after this announcement, IL&FS announced that they have roped in another PSU bank for Online investment solutions - Oriental Bank of Commerce. Now OBC customers will have access to IL&FS online trading platform. IL&FS will be controlled by E-Trade the pioneers of Internet stock trading in the US.
With the entry of Reliance Money, existing players have woken up to survive competition by tieing up with PSU banks which have a large pool of customers.
Tags: Invest India, Dalal Street, Internet Stock Trading, India Share Trading, SBI, eTrade
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Published by Webmaster @ 5:50 PM IST.
Valuation of Indian Real Estate Stocks.
Tuesday, November 21, 2006
I have had investors coming to me and asking about How to value Indian real estate stocks ? I decided to sit and study the sector and went through the following material.1. Red Herring prospectus of DLF
2. Macquire Research Equity - India property - Nov 14th-2006
3. ShareKhan Sector Special - Nove-6th-2006
4. Sobha Developers Ltd - Final RHP Dated Nov-6th 2006.
In India, Real Estate Stocks can be valued by two methods - Value of the Land Bank or Sum of Parts Valuation [NAV] or by the routine cash flow discounting model.
Macquaire in its Research report dated 14-NOV-06, says, real estate stocks in India should not trade above their NAV premium. The real estate sector is expected to grow at CAGR of 60% betwen 2006-09. Macquaire's model involves giving 40% weightage to Land Bank, 15% to debt, Equity and Interest costs, 25% for Management of projects and 20% for ROA and ROE. The report further states that, most Asian real estate stocks are valued on NAV. The model sounds reasonable.
Based on this model, Macquaire has arrived at NAV price of Rs 501 per share for Unitech Ltd and it is also the target price for the stock. The NAV for Mahindra Gesco developers Ltd is Rs1110 and the target price for the stock is Rs 945.
Also read Cushman & Wakefield reports about Land Value certifications of DLF and Sobha Developers.
Tags: Invest India, Dalal Street, India Real Estate, Real Estate Stocks
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Published by Webmaster @ 11:45 PM IST.
AC Refrigeration Business to ride retail boom in India
Sunday, November 19, 2006
Who will ride the Retail Boom ? Reliance, Pantaloon or Bharti ? We don't know.
During the 18th century gold mine rush in California, the companies that made money were the allied tools suppliers. Similarly, during the retail boom in India, we don't know if Reliance or Pantaloon will make money or not, but we know Blue Star Limited and Carrier Aircon Ltd are all set to cash-in on the refrigeration needs of these companies. Refrigeration for cold storage units, retail outlets and for their logistics vehicles.
Both Blue Star and Carrier Aircon are in talks with Reliance Retail Ltd and Bharti. So keep an eye on these stocks.
Tags: Invest India, Dalal Street, Retail India, Invest India
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Published by Webmaster @ 6:53 PM IST.
CLSA bullish on ONGC - BUY Target of Rs930
Thursday, November 16, 2006
CLSA's Research report on Oil & Natural Gas Corporation Limited.
With the crude oil prices coming off by USD 20 per barrel, ONGC has underperformed the broader market by c.10ppt over the last three months. ONGC is a beneficiary of a softening crude price environment, however, as industry under-recoveries (which ONGC shares) will come off faster. After a flat USD 23-24/bbl net realisation over FY05-07CL, we see unit realisations increasing in FY08CL even after we build in an adverse change in the subsidy sharing. In addition, ONGC’s 2-year 5.6% volume growth cagr will support a 14% earnings cagr over FY06-08CL. BUY. "
ONGC has only marginally gained from rising crude in FY05-07CL
"Crude prices have risen by 50% over FY05-07CL with a leveraged impact on most E&P bottomlines. The subsidy burden on ONGC, however, has kept its gross realisations in the USD 43-45/bbl range over the last six quarters. In fact, adjusted for the fixed and variable production taxes, net crude realisations have stayed at USD 23-24/bbl over FY05-07CL. While higher crude prices have helped profitability in overseas assets (Sudan-GNOP) and for its VAP portfolio, ONGC’s 11% EPS cagr over the last two years has rested primarily on volume growth and the legacy gas price increase in FY06."
It stands to benefit from a falling crude price environment
"Falling crude prices, however, may lead to an uptick in ONGC’s realisations. With auto fuels priced at USD 60/bbl, under-recoveries will disappear at this threshold and overall retail under-recoveries will come off by USD 7 billion YoY to USD 5.5 billion in FY08CL. Even after building in an increase in upstream subsidy sharing (from 33% to 50%) and an even larger burden for ONGC (from 87% to 95% of upstream share), we find that net ONGC realisations could actually improve USD 1.8 per barrel YoY even as Brent averages USD 7 per barrel lower from FY07 levels. A status quo on subsidy sharing norms will increase realisations by a further USD 5 per barrel creating room for a 15% earnings upgrade."
"ONGC has underperformed the market by 10ppt in the last three months on the back of poor investor sentiment towards E&Ps as crude prices collapsed by USD 20/bbl. This will start to change over the next few quarters as ONGC delivers steady growth even in a falling crude prices environment on the back of higher overseas volumes and a rebound in domestic production. With most other E&Ps at risk of earnings downgrades (consensus crude estimates are USD 5-6 per barrel above current prices), the differentiation should become stark."
ONGC is a value play. ONGC will stand out with steady earnings growth.
"At 9x PE and 4% dividend yield ONGC is one of the cheapest stocks in India and at USD 5/boe, one of the cheapest in the global upstream space. Our upgraded target price of Rs 930 per share indicates a 7% upside. BUY."
Tags: Invest India, Dalal Street, ONGC Buy, Stock Research
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Published by Webmaster @ 8:46 AM IST.
BSE SENSEX - Historical performance since 1979
Sunday, November 12, 2006
Investors,
I have obtained data from the stock exchange and here is the historical performance of BSE Sensex since its inception in 1979. The returns over a period of 27 years is 17%.
Tags: Invest India, Dalal Street, Sensex
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Published by Webmaster @ 11:15 AM IST.
Parsvnath Developers and Lanco Infratech IPO Subscription - Final
Saturday, November 11, 2006
The week that went by was a fantastic week with BSE Sensex closing at an all time high of 13,282 and record money flowing into the Indian IPOs by Retail Individual Investors.
Retail Indian Investors poured in Rs 3,300 crores cash into Parsvnath Developers Ltd IPO. This is after they had already put some Rs 300 crores in Info Edge India Ltd IPO. Retail Indian Investor also invested Rs 600 crores into the Lanco Infratech Limited IPO.
I'll keep you informed when the allotment details will be made available online. Happy Investing until then.
Tags: Invest India, Dalal Street, IPO India, Money India
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Published by Webmaster @ 7:38 AM IST.
Parsvnath Developers and Lanco Infra IPO Review and Analysis
Thursday, November 09, 2006
Parsvnath Developers Ltd issue which has already been subscribed 6 times overall and 0.6 times in retail category is a invest for short and long term Indian investor. Studying the Investment Pattern of Retail Indian Investors and the grey market premium in Jaipur at Rs4,500 per application of Rs96,000 tells that the issue is likely to perform good.
R S Iyer , S P Tulsian and Manish Bhatt have all asked to apply. If it lists at say Rs 400 then its P/E will be at 50 for FY 07 earnings, do we really care about P/E in a Bull Market ?
Tags: Invest India, Dalal Street, IPO India
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Published by Webmaster @ 12:43 AM IST.
Parsvnath Developers IPO Recommendation
Monday, November 06, 2006
DalalStreet.Biz analysts have spoken to some industry folks and we recommend a Subscribe to Parsvnath Developers IPO. Complete Analysis of Parsvnath Developers IPO is available here.
Also our most favorite analyst has told to invest for long term in Lanco InfraTech IPO as most of it will be subscribed by institutional investors and it maybe the next GMR Infra Ltd.
Tags: Invest India, Dalal Street, IPO, IPO India
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Published by Webmaster @ 11:05 PM IST.
Reliance Money brokerages are Lowest in India
Wednesday, November 01, 2006
A fortnight ago, we first broke the news of Reliance Capital Ltd entering brokerage services through their arm Reliance Money and not RTrade or Reliance Trade as reported by section of the press.Reliance Capital Limited promoted Reliance Money's brokerage structures are available with us. Reliance Money is offering a brokerage charge of 7.4 paise on every Rs 100 worth of delivery based trades, and 2 paise on non-delivery trades (a.k.a Intra Day) which rival brokers admit is the lowest in the industry so far.
Reliance Money will offer a common platform for investors to invest in all equity products, commodities, forex, IPOs, insurance and other financial products.
Retail brokerage houses fear that Reliance Money may rewrite the rules of the broking business, distorting business dynamics in the short term. This move will have a direct impact on the bottomline of speculative company like Indiabulls Financial Services Limited and India Infoline Limited.
Reliance Money is offering prepaid cards of value Rs 500, Rs 1,350 and Rs 2,500. An insider has tipped that a Kolkatta based brokerage house is coming with flat fee unlimited trades package. I will get you the details soon. Reliance has also launched a Credit Card in association with CitiBank.
For Details Contact: Jaya @ 98675- 70030. Tell her you were referred by DalalStreet.Biz WEBSITE to get an attractive offer.
Tags: Dalal Street, Invest India, IPO India, Reliance Capital
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Published by Webmaster @ 1:27 AM IST.
