FACEBOOK PROFITS NOSE DIVES

FB reported a net profit of $64m  in the last quarter of 2012, compared with $302m a year earlier.

However revenue were up 40% at $1.6bn, largely due to a big jump in advertising revenue.

Shares of Facebook fell by almost 6% ($29) in after-hours trading in NYSE.

FB, made IPO at $38, May, last year. The IPO value had lost 50% by September.

FIIS KEEP FAITH IN INDIA

FIIs have so far in Jan 2013 have invested Rs 19700Cr in equities, highest in a month in the last one decade. For the whole year in 2012, FIIs had invested Rs 1.29 lac Cr. The market in 2012 went up by 26%. In spite of such huge investments in Jan this year the benchmark indices have risen by just 3%. More reform measures, improved global economic scenario and a market friendly budget by our FM may take the indices to newer highs.

ONGC IS NUMBER 1 COMPANY IN TERMS OF MARKET CAP

RIL lost Rs 14.70 today to close at Rs 882.85. The market cap of RIL stood at Rs 285028Cr. ONGC closed at Rs 333.30, down Rs 1.35. The market cap of ONGC is Rs 285184Cr. Just a shade better than RIL. 

IPO ANALYSIS: V-MART RETAIL LIMITED –HYPED PREMIUM – AVOID

ISSUE DETAILS

ISSUE OPENS / CLOSES ON	01-02-2013 / 05-02-2013
ISSUE SIZE	44,96 000 EQUITY SHARES INCLUDING OFFER FOR   SALE OF 17,35,000SHARES
FACE VALUE	RS 10
PRICE BAND	RS 195-215
IPO GRADE	GRADE 3 BY CARE (AVERAGE FUNDAMENTALS)
PROMOTERS	LALIT AGRAWAL, HEMANT AGARWAL, MADAN AGARWAL AND OTHERS
BRLM	ANAND RATHI
REGISTRAR	KARVY

IT M.

BUSINESS

V-Mart currently operates 59 stores spread across 51cities in 10 states & union territories. VMRL operates all its stores on its own and has no franchisees. VMRL's operations are mainly spread in tier 2 and tier 3 cities of Northern, Eastern and Western part of the country. V-Mart has 3 business verticals viz. Apparels, General Merchandise and Kirana Bazaar. The general merchandise section is further divided into non apparels and home mart. 39 stores are MiniHyper Markets which have all the three verticals and the remaining 20 are Family Fashion Stores which do not have the Kirana Bazaar.

Objects of the Fresh Issue

 (a) To open 60 new stores;

(b) Expansion of distribution centres;

(c) To fund Working capital requirements; and

(d) General Corporate Purposes.

 FINANCIALS            

                                                                   (RS IN CRORES)

	31-03-2010	31-03-2011	31-03-2012
TOTAL INCOME	144	215	282
PAT	2.22	6.21	11.04
EQUITY	6.85	7.34	7.34
EPS (RS)	1.79	4.75	7.92

RISKS

1. The company is facing some litigation which include cases related to adulteration of food items,recovery of rent, overcharging for products and over weighing of various products.

2. Company operates in highly competitive, high working capital intensive segment.

3. Moderate scale of operations, regulatory uncertainties.

4. Company faces hidden losses on account of shrinkage, pilferage and theft which will have impact on profitability.

5. The average cost of acquisition of shares by promoters is around Rs 1 per share.

  

6. IPO grade 3 by CARE- indicating average fundamentals.

  

VALUATION AND RECOMMENDATIONS

For the eight month ended Nov 2012 the company reported a revenue of Rs 250Cr and profit of Rs 13Cr.The Company post IPO will have equity of Rs 17.95Cr.  The likely EPS for FY13 will be around Rs 10. The company is demanding a PE multiple of 20 which is on the very high side. The average return on net worth in the last 3 years is less than 16%. The IPO is very aggressively priced. Avoid subscription.  Fair value of the share in the short term is around Rs 120.

L&T FINANCE HOLDINGS Q3 RESULTS ON 29-01-2013

RIL TO ISSUE BONDS IN HK, SINGAPORE MARKETS

RIL has launched its bond programme to raise Rs 2700Cr in Hong Kong and Singapore markets. Although RIL is a cash rich company it is taking advantage of historical low rates in bond markets.

TOYOTA IS WORLD'S NUMBER 1 VEHICLE MAKER

Toyota with a sales of 9.75 million vehicles in 2012, has over taken General Motors, which was the biggest vehicle maker in 2011. GM has sold 9.29 million vehicles in 2012.

SESA GOA'S LIBERIA'S PRODUCTION TO START FROM FEB 2014

Sesa Goa which acquired the mining cluster projects in Liberia for Rs 600cr will be spending another Rs 500cr for fully developing the mine for commercial production.The company is aiming to produce 10 million tonnes of iron ore per annum in the first phase from Liberia's Western Clusters project. Sesa Goa  hopes to begin the shipments from it from February 2014.

HERO MOTOCORP MAY REACH WAGE SETTLEMENT THIS WEEK

Hero MotoCorp management is scheduled to meet the representatives of labour unions on Tuesday to iron out the differences in wage settlement. Workers are demanding an wage increase of Rs 15000 per month spread over three years where as the management had offered Rs 7000. Manangemnt may ultimately agree for wage increase around Rs11000 p m. Hero MotoCorp can not afford slow down in production.  The entry of its erstwhile technical partner - Honda has taken the competition to next level. Keeping the external factors in mind HERO MotoCorp management may go in for early amicable settlement. 

STOCK WATCH : SESA GOA - BUY

SESA is India’s largest producer and exporter of iron ore in the private sector with operations in the states of Goa and Karnataka in India and a large integrated project site in Liberia, West Africa.

The company had no mining operations in the last quarter since mining is banned in the state of Karnataka and Goa where its operations are concentrated. The company has appealed to SC. The application is likely to be taken up in the first week of Feb 2013. A favorable verdict from SC can take the stock to Rs 250 level.

CMP	RS 183
INDUSTRY	MINING/ IRON /STEEL
NET PROFIT Q3 FY13	RS 18CR
MARKET CAP	RS 15900CR
52 WEEK LOW / HIGH	RS 145 /270
PROMOTERS HOLDING	55%
FII HOLDING	27%

EXXON MOBIL REPLACES APPLE AS WORLD'S MOST VALUABLE COMPANY

Apple which was most valuable company in the world in terms of market cap since 2011 has lost its crown to Exxon Mobil, the oil giant.

Exxon Mobil has regained the top slot after Apple shares fell 2.4% today, following a 12% drop on Thursday.

Apple has seen its shares fall 37% since their record high last September.

At the close on Wall Street, Apple had a market value of $413bn , against Exxon's of $418bn.

IPO NEWS: V-MART PRICE BAND AT RS 195-215

V-Mart IPO is likely to hit the market in the first week of Feb 2013. The company is offering 57.46 lac shares in the price band of Rs 195-215.

MARUTI Q3 RESULTS ON 25-01-2013

Country's largest car maker will announce its Q3 results tomorrow. The company is expected to declare a net profit around Rs 280Cr for the quarter as against Rs 205Cr made in the same quarter  previous year. The stock closed at Rs 1545, down Rs 28 today.

RCOM Q3 FY13 RESULTS ANALYSIS : ALL ROUND QUALITATIVE IMPROVEMENTS

As expected RCOM has reported flat growth for the third quarter of FY13. However there has been all round qualitative improvements:

1.EBITDA MARGIN AT 31.2% AMONGST THE HIGHEST IN THE INDUSTRY.


2. 3G CUSTOMERS AT 6.1 MILLION, WHICH IS HIGHEST IN THE INDUSTRY   
AND 27.6 MILLION DATA CUSTOMERS.
  
3. REVENUE PER MINUTE AT 44 PAISA, AMONGST THE HIGHEST IN THE INDUSTRY 
FOR THE LAST ELEVEN CONSECUTIVE QUARTERS.

4. WIRELESS MINUTES AT 103 BILLION.

5. TOTAL DATA TRAFFIC AT 22,512 TB (MN MB) AND DATA USAGE PER SUB                
AT 280 MB, HIGHEST IN THE INDUSTRY.

6. GLOBAL ENTERPRISE BUSINESS REVENUES AT RS. 2,454 CRORE.

7.RPM: RPM stood at a healthy 44 paisa. The company has successfully achieved RPM stability for the last 11 consecutive quarters in spite of increasing competition and over supply of minutes in market place.

DIVIS LAB Q3 RESULTS ON 02-02-2013

Divis Lab will declare its Q3 results on 02-02-2013.

RCOM MAY SURPRISE THE STREETS

RCOM will announce its Q3 results today. The company is likely to report better margins and EPS. Rating agencies may re rate the stock after reviewing its Q3 performance.

HUDCO TAX FREE BONDS OFFER GETS TEPID RESPONSE

HUDCO's Rs 750Cr tax free bond offer has been  subscribed just 1.74 times. The company is expecting get huge response for the offer and has  indicated  to retain subscription up to Rs 5000Cr (Shelf Limit). The offer so far has mobilized less than Rs 1500Cr. The extended offer now closes on 01-02-2013.

MARKET TO OPEN WITH MINOR GAINS, CLOSE STRONGLY

Benchmark indices are expected to open with minor gains and may with substantial gains. NIFTY may recover more than what it lost yesterday. Unwinding of long positions and bear hammering of HUL had pulled the indices down yesterday. However, FIIs have net bought in excess of Rs 1000CR in cash market yesterday. Other than RCOM and Sun Network, there are no results to be declared today which will have bearing on the indices. 

HUL RESULT DISAPPOINTS MARKETS

HUL reported a revenue of Rs 6788cr, net profit of Rs 871cr and EPS of Rs 4.03 for the Dec quarter. The comparative figures for the same quarter last year  are Rs 6017cr, Rs 751cr and an EPS of Rs 3.49. OPM  margin for the quarter has been improved by 50 basis points. However markets have given thumps down to the stock. The stock lost six odd percent and closed at Rs 465. 

SWISS BANK SECRETE FUNDS MAY ENTER EMERGING EQUITIES MARKETS THROUGH BACK DOOR

A new Tax Administrative Assistance Act will come into force on February 1 in Switzerland, that will be able to provide banking and other details sought by other countries, including India. Those who have kept money in Swiss bank must be already working on alternate plans how to hood wink the governments. The one possible avenue may be the equity investments in emerging markets through funds transfers from tax haven countries, again exploiting some loop holes in the system.

ACB INDIA MULLS IPO, OFS

ACB India is planning to raise up to Rs 1,000 crore through initial public issue and offer for sale.

The funds are intended to be utilized among others for commissioning two power projects of total 900 MW power generation capacity in Chhattisgarh by 2014, entailing total investment of about Rs 4,000 crore.

The company has already pumped about Rs 1,100 crore in both the plants.The coal linkages to these power plants would be supplied by Coal India Ltd.

The company had clocked a turnover of Rs 1,350 crore and profit after tax of Rs 290 crore in FY2012. 

HUDCO TEX FREE BONDS OFFER CLOSES TODAY

The tax free bonds offer of HUDCO closes today. The issue has already been over subscribed. The Rs 750Cr bond offerings is likely to garner around Rs 5000Cr (Shelf Limit). INVEST AND GET BENEFIT OF TAX FREE INCOME.

RIL TO LOSE SOME SHINE TODAY, MARKETS TO CLOSE IN RED

RIL stock which had a dream run in the last 5-6 trading sessions may lose some shine today. Open interest in the stock indicates bulls have already cut  the long positions and profit has been booked.  Hence the stock is likely to close in red today. Similarly the benchmark indices too are likely to close in the negative territory.

GOVERNMENT TO INFUSE RS 3004 CR TO SBI

SBI will get Rs 3,004 crore as part of the government's capital infusion plan for augmenting its Tier-I capital in the current fiscal. The fund infusion will enable it to support national and international banking operations.

IDBI BANK POSTS MARGINAL IMPROVEMENTS IN PROFITS

IDBI bank has posted a net profit of Rs 417Cr for the quarter ended December 31, 2012 as compared to Rs 410Cr for the quarter ended December 31, 2011. Total Income has increased from Rs 6282Cr for the quarter ended December 31, 2011 to Rs 7070Cr for the current quarter.

INTEL'S REVENUE, PROFIT DECLINE

World's largest maker of computer microchips - Intel, continues to suffer from weaker PC sales.

Net profit for the last three months of 2012 fell by 27% to $2.47bn and revenue fell by 3% to $13.5bn.

Sales of PCs, the majority of which use Intel chips, have suffered with the rise of smartphones and tablets.

For the whole year Intel's profits stood at $11bn, on revenues of $53.3bn. This was a fall of 15% and 1.2% respectively on the previous year.

RIL, HDFC BANK AND IDBI BANK Q3 RESULTS ON 18-01-2013

TCS IS NOKIA'S GLOBAL I T PARTNER

Nokia has selected TCS as its I T global partner. Another feather on TCS's cap.

INDIAN RAILWAY FINANCE CORPORATION LIMITED – TAX FREE BONDS- INVEST.

ISSUE OPENS / CLOSES ON	21-01-2013 / 29-01-2013
ISSUE SIZE	RS 1000CR / RS 8896CR
SERIES	S1 AND S2
RATE OF INTEREST	7.18% / 7.34% P.A.
PERIOD	10 / 15 YEARS
INSTRUMENT	TAX FREE, SECURED, REDEEMABLE,             NON CONVERTIBLE BONDS
FACE VALUE / PRICE	RS1000
MINIMUM APPLICATION VALUE /MARKET LOT	RS 5000 / ONE
RATINGS	AAA BY CRISIL, CARE AND ICRA
LEAD MANAGERS	SBI CAPITAL MARKETS, A.K. CAPITAL SERVICES, ICICI SECURITIES, ENAM SECURITIES AND KOTAK MAHINDRA CAPITAL COMPANY.

HDFC BANK, HUL, ULTRA TECH AND HINDALCO TO SIZZLE ON 18-01-2013

OIL &GAS, BANK AND I T STOCKS SHINE.

Government decision to partially decontrol diesel prices propped up the otherwise directionless market. ONGC, RIL, OIL  and the shares of oil marketing companies staged a smart rally. HCL Tech, INFY  TCS and Wipro  among the tech stocks which were active. SBI, HDFC Bank, PNB and Kotak Mahindra Bank closed in the green.  MARUTI which had gained more than one percent in the early trade lost momentum after the announcements of partial decontrol of diesel which will have bearing on the sales of its diesel cars. MARUTI closed flat.  BAJAJ Auto and Hero closed in negative due to poor  quarterly numbers. NIFTY closed at 6039,up 37 points. FIIs net bought to the extent of Rs 564cr in cash market.

HERO MOTOCORP IN REVERSE GEAR

Hero MotoCorp is virtually in reverse gear. For the quarter ended Dec 12 the company has reported very poor numbers. Other than slight improvement in revenue figures all other indicators have shown negative growth. Most worrying factors are NPM and OPM percentage, which has come down sustainability due to tepid growth. The company faces stiff competition from Bajaj Auto, TVS Motors  and from its erstwhile technology partner Honda.  The stock closed at Rs 1823, down Rs11.  Results were announced after the market  was closed. The impact of the results will be known tomorrow. The latest numbers indicate hard days ahead for Hero.

(in Cr.)	Dec-12	Sep-12	Dec-11
Revenue	6,187.62	5,187.46	6031.45
Net Profit	487.89	440.58	613.03
EPS	24.43	22.06	30.70
Cash EPS	38.61	36.56	45.65
OPM %	14.04	15.78	16.90
NPM %	7.88	8.49	10.16

EXPECT SOFT OPENING AND STRONG POSITIVE CLOSING

Sentiments and emotions do play a role in stock markets. But they are temporary. The remark of RBI governor yesterday pulled the indices down. Governor expressed his concerns that inflation is still high enough to ease policy rates that will spur growth. Bears took advantage of the remarks and hammered rate sensitive counters. The positive factors are FIIs are very bullish on India and more funds are expected to come to Indian stock markets. Yesterday World Bank has indicated that India's growth is likely to match China's in the coming years. This is good news for markets in general and for metal, FMCG and bank stocks in particular. Markets are expected to recover much of its yesterday's lost ground. Expect strong positive closing.

METAL, INFRA, AUTO AND BANK STOCKS DRAG NIFTY

NIFTY lost 55 points and closed at 6001.  Profit booking in metal, infra, auto and bank stocks have pulled the benchmark indices. The above segment along with I T stocks had staged smart rally from the beginning of the year. Hence some profit booking was expected. However, FIIs continue to be net buyers in cash market. Today they have net bought in excess of Rs 1025cr.  Among metals, Hindalco, Tata Steel and Jindal Steel lost between 2-4%. BAJAJ Auto and MARUTI shed in excess of Rs 40. ICICI Bank and SBI lost 2% each.  The trend is likely to reverse tomorrow and NIFTY is likely to open and close in green .

HERO MOTOCORP, HCL TECH Q3 RESULTS ON 17-01-2013

TODAY'S SIZZLERS - RIL, HDFC BANK AND HERO MOTOCORP.

GLOBAL CHALLENGERS: 20 INDIAN FIRMS AMONG 100, CHINA LEADS THE PACK -BCG

According to BCG twenty Indian firms including RIL, Infosys and Bharti Airtel are among the 100 'global challengers' that are reshaping their respective industries and  also outpacing established players from the West.

These 100 companies from the emerging markets are outshining household names in the US and Europe and are having a "profound impact on the global economy".

The list has 30 companies from China followed by India (20), Brazil (13), Mexico (7), Russia (6) South Africa (5).

The remaining  Indian companies are, Tata Chemicals, Tata Consultancy Services, Tata Motors and Tata Steel, Bajaj Auto, Bharat Forge, Crompton Greaves, Dr Reddy's Laboratories, Godrej Consumer Products, Hindaclco Industries, Larsen & Toubro, Lupin, Mahindra & Mahindra, Motherson Sumi Systems, Sun Pharma, Vedanta and Wipro.

MARUTI, ULTRA TECH AND BAJAJ AUTO TO SIZZLE TOMORROW

VISHWARAJ PLANS RS 374CR IPO

Belgaum based sugar manufacturer - Vishwaraj Sugar Industries plans to raise Rs 374cr through IPO.  The IPO may happen in Feb / Mar as the company has received necessary approvals from SEBI.    
The funds are intended to be used for expanding the crushing and distillery capacity.

FORTHCOMING IPO: TWITTER

Micro-blogging site Twitter's IPO is likely hit the street in 2014. The company is planning to raise $15 billion through the offerings. The company's revenue is expected to cross $ 500 million mark this year.

ULTRA TECH Q3 RESULTS

Ultra Tech will announce its Q3 results on 19-01-13. The company is expected post good numbers and better guidance for FY14.

INFY UP 13% ON GUIDANCE REVISION

Infosys guidance has surprised the markets. The stock is up 13 % on short covering and some buying by institutions. The results for Q3 are as per expectations.

                                                                                        (  RS IN CRORES)

Revenue	9,398.00
Net Profit	2,265.00
EPS	39.46
Cash EPS	43.78
OPM %	35.09
NPM %	24.10

YEN RAIN IN JAPAN

Japanese government has approved a fresh 10.3 trillion yen ($116bn) stimulus package in an attempt to spur a revival in its economy.

The package will include infrastructure spending, as well as incentives for businesses to boost investment and is  likely to boost Japan's gross domestic product by two percentage points.

TATA MOTORS MARKET CAP NEAR 1 LAC CRORE

Tata Motors stock touched 52 week high of Rs 337( intra day ) and closed at Rs 333 yesterday. The market cap of the company including DVR shares market cap is now around Rs 1 lac crore.  (Rs 90270cr +Rs 8935Cr). 

HERO MOTOCORP Q3 RESULTS

Hero MotoCorp Q3 results will be announced on 17-01-2013.

Q3 RESULTS : INFY AND TCS MAY MOVE IN OPPOSITE DIRECTION

I T bellwether Infosys will announce its Q3 results tomorrow. As per our analysis the Q3 results and guidance of Infosys for FY14 will be a dampener.  The company's top-line may be as per analyst exceptions  however the company may miss profit estimates.  On the other hand TCS may announce good numbers and better guidance for FY14. Hence INFY may move towards south and TCS towards north in the coming days. 

PSU BANKS TO GET RS 12500CR CAPITAL INFUSION

Some 10 PSU banks including SBI will get around Rs 13,500cr as capital before 31-03-13. Today the  Cabinet has given in-principle nod for providing need based re-capitalization of banks till 2018-19 for ensuring compliance with the Basel III capital adequacy norms.This will enable the banks to maintain the Tier I CRAR (capital to risk-weighted assets ratio) at a comfortable level and will be compliant to stricter capital adequacy norms of Basel III whenever it is implemented.

RIL Q3 RESULTS ON 18-01-2013

Reliance Industries will announce its Q3 results on 18-01-2013.

IPO ANALYSIS : HUDCO TAX FREE BONDS - INVEST

ISSUE OPENS / CLOSES ON	09-01-2013 / 22-01-2013
SIZE	RS 750CR / RS 5000CR
SERIES	S1 AND S2
INSTRUMENT	TAX FREE SECURED  REDEEMABLE NON CONVERTIBLE BONDS
FACE VALUE / PRICE	RS 1000 / RS 1000
MINIMUM APPLICATION	RS 5000
RATINGS	AA+ BY CARE AND IRRPL
LEAD MANAGERS	AXIS CAPITAL, SBI CAPS, KOTAK MAHINDRA AND ICICI SECURITIES
REGISTRARS	KARVY

HTC REPORTS SLUMP IN PROFITS

The Taiwanese mobile phone maker's profit is down by 90% for the December quarter. The un-audited net profit in the fourth quarter is $34m, down 90% compared to the profit made by the  firm a year ago.

There were no launching of big products from the firm in the quarter.

This is the fourth quarter in a row that HTC profits have fallen sharply.
The firm faces stiff competition from Apple and Samsung, which have profited from the release of the iPhone 5 and Galaxy models.

SAMSUNG TO POST RECORD PROFITS

Samsung Electronics is likely to post record profit of $ 8.5bn for the 2012 December quarter, powered by growing sales of its smartphones.

The estimated an operating profit for the quarter, a 90% jump from the same period a year earlier.That would make it the fifth quarter in a row of record profits for Samsung.

SBI CAPS AMONG 6 INVESTMENT BANKS SHORTLISTED FOR NTPC OFS

NT PC's offer for sale is likely to be completed by the month end. Six investment banks have been shortlisted to carry out the OFS.  SBI Caps, Morgan Stanley, Deutsche Bank, Kotak Mahindra Bank, Citigroup and Goldman Sachs are the shortlisted bankers.  The offer is likely to fetch Rs 13000cr for the exchequer.

INFOSYS AND TCS Q3 FY 13 RESULTS

I T majors Infosys and TCS will announce their results for Q3 on 11-01-2013  and 14-01-2013 respectively.