IMF: RECESSION HAS HIT RUSSIA

Russia is experiencing recession now because of damage caused by the Ukraine crisis, says International Monetary Fund.

IMF further says there will be capital out flow in excess of $100 billions this year from Russia.

KOTAK MAHINDRA BANK POSTS DISAPPOINTING RESULTS

Kotak Mahindra Bank has posted a PAT of Rs. 24649.90 million for the year ended March 31, 2014 as compared to Rs. 21884.60 million for the year ended March 31, 2013. The total Income has increased from Rs. 159131.00 million  to Rs. 172356.30 million for the year ended March 31, 2014.

For Jam-March quarter the Bank has posted a PAT of Rs. 6633.10 million as compared to Rs. 6656.00 million for the same quarter last year. Total Income has increased from Rs. 43885.90 million to Rs. 47821.70 million for the Quarter ended March 31, 2014.

FIR AGAINST MODI FOR VIOLATING RP ACT

Election Commission has instructed  the Gujarat Chief Secretary  to register a complaint/FIR against Narendra Modi and others for his speech this morning in Ahmedabad.

The Commission is of the view that by holding a meeting and also addressing the same when polls are going in Gujarat and different parts of country, Modi and others violated provisions of the Representation of Peoples Act.

H C ORDER HAS NO IMPACT ON SUN PHARMA STOCK

Sunpharma has withstood the Andhra Pradesh H C's order which directed the exchanges to maintain status quo on the proposed merger (with Ranbaxy), had no impact on the stock. The stock closed almost flat from yesterday's price at Rs 637. Sensex has lost another 48 points in today's trading.

JSW ENERGY IPO : FOUR YEARS ON, INVESTORS ARE STILL IN DARKNESS

The big names in the investment banking backed this IPO. In Dec 2009, JSW Energy came public at Rs 100 a share. The IPO carried grade 4 awarded by CARE. The IPO was lead managed by JM Financial Consultants, Kotak Mahindra, ICICI Securities  ,IDFC-SSKI,J.P.Morgan India ,SBI Capital Markets,Morgan Stanley India Company and IDBI Capital Services.  The shares are now trading around Rs 55, at 45 % discount to its issue price whereas the bench mark indices have gone up by more than 40% during the same period. 

FLIPKART FACES E D HEAT

On line retailer Flipkart is facing the heat of  Enforcement Directorate,  for alleged breach of Foreign Exchange Management Act, and  is likely to  be served a show-cause notice alleging violation of Rs 1,400 crore.

India has not allowed foreign investment in e-commerce firms selling wares directly to consumers but allows overseas participation in the so called marketplace models where the website of a company such as Flipkart is used as a platform by third-party vendors.

E D alleges that Flipkart shifted to the marketplace model, converting itself into a platform for independent buyers and sellers to conduct business on its site. 

INDIA, WORLD'S THIRD BIGGEST ECONOMY IN TERMS OF PPP

India has displaced Japan to become the world's third biggest economy in terms of purchasing power parity (PPP), according to  World Bank . 

PPP is used to compare economies and incomes of people by adjusting for differences in prices in different countries to make a meaningful comparison.

India's share in World GDP in terms of PPP was 6.4% in 2011 compared with China's 14.9% and the US' 17.1%, the latest International Comparing Programme showed. The survey covered 199 economies.

The United States remained the world's largest economy, but it was closely followed by China when measured using PPPs. India was now the world's third largest economy. 

TWITTER'S SHARE PRICE FALLS BELOW ITS IPO LISTING PRICE

Slower growth and loss reported in the last quarter has taken a toll on the stock price of Twitter.Twitter's active users on the social network reached 255 million in the first three months of 2014, up 5.8%, but below  analysts' expectations.

Twitter also reported a net loss of $132 m for the latest quarter.

The above factors caused Twitter's stock to fall by more than 11% in after-hours trading, sending the price below its initial public offerings listing price of $38.80 per share. Twitter came IPO at $26 a piece and listed at $38.80.

ANDHRA PRADESH HIGH COURT STAYS SUN PHARMA-RANBAXY MERGER

In a setback to Sun Pharma-Ranbaxy merger process, the Andhra Pradesh High Court has issued orders to the stock exchanges to maintain interim status quo on the matter.

Some investors have alleged that there was heavy trading of Ranbaxy stock before the merger with Sun Pharma was announced on April 6. They have pleaded that market regulator SEBI should  investigate in to the possible insider trading of Ranbaxy shares and take appropriate action against the parties involved.

SONIA, MODI'S FATE WILL BE DECIDED TODAY

The nation will witness 7th phase of polls today. Among other fate of Congress president Sonia Gandhi and the BJP's prime ministerial candidate Narendra Modi will be decided by the voters in their respective constituency Rai Bareli and Vododara. Voting will be held for 89 Lok Sabha constituencies in this phase.

BHARTI AIRTEL'S NET UP BY 33 PERCENT

Bharti Airtel for the year ended March 2014, posted a revenue of Rs 85,746.2 crore, up 11.5% compared to previous year. PAT stood at Rs 3,019.4 crore, up 33 percent over the previous year.

The Company for Jan-March quarter has posted a net profit of Rs. 2060 Cr as compared to Rs 1084 Cr for the quarter ended March 31, 2013. Total Income has increased from Rs 11640 Cr for the quarter ended March 31, 2013 to Rs13093 Cr for the quarter ended March 31, 2014.

BLACK MONEY : GOVT SUBMITS LIST TO SC. MONEY MIGHT HAVE ALREADY DISAPPEARED FROM THESE ACCOUNTS?

The government placed 18 names and documents of account holders in Liechtenstein Bank in Germany before the Supreme Court in a sealed cover. FirstchoiceIPO strongly believes that the money in those 18 accounts have already withdrawn or disappeared or transferred elsewhere.

PRADIP OVERSEAS : ONE MORE MISJUDGED IPO FROM ANAND RATHI ADVISORS

Anand Rathi Advisors introduced Pradip Overseas to the market in April 2010. The IPO was made at Rs 110 a share. The IPO carried grade 2 awarded by ICRA. After exactly 4 years the Rs 10 FV shares now trading around Rs 3.50.

FirstchoiceIPO had advised the investors to stay away from the IPO because of its poor fundamentals and irrational pricing. 

CANARA BANK TO RAISE FUNDS THROUGH QIP

Canara Bank is planning to raise funds through QIP route. Funds are required to strengthen the equity base to meet Basel III guidelines and also partly to meet its business requirements.

It is one of the most undervalued stock, among public sector banks. It is available almost at half of its book value. One can accumulate with a 2-3 years horizon. 

MODI FACES MINORITY HEAT IN VARANASI: THE NEW INDIAN EXPRESS

The New Indian Express says that Modi is facing serious minority heat in Varanasi.

Muslim intelligentsia is furiously campaigning in Varanasi, seeking support from Muslim groups and NGOs to stop BJP prime ministerial candidate Narendra Modi’s victory in the holy city.

At least 65 NGOs from across the country are camping in Varanasi to educate voters of terror tsunami that may knock on their doors after Modi’s victory. Activists from All India Secular Forum and Centre for harmony & peace, PVCHR, Janmitra Nyas and Sagar will also have a meeting with Muslim voters on May 4. While Modi is talking of development his supporters like Praveen Togadia and Baba Ramdev spewing venom by targeting minorities. People are not scared of Modi, but of ideologue behind the BJP, says NGOs co-coordinator. The biggest issue of Banaras election is communalism and not corruption. A group is also distributing pamphlets which may create further discontent between the Hindu and Muslims.

SEA TV NETWORK IPO : INVESTORS ARE AT SEA

Sea TV Networks came IPO during in Sept 2010 at Rs 100 a share. Chartered Capital Investments were the BRLM. The IPO carried grade 1 awarded by ICRA.  The stock is now trading around Rs 12 and the IPO investors are 'at sea'.

 This was our observation while analyzing the IPO:

The IPO Grade 1 assigned by ICRA reflects risks arising out of Sea TV's small scale of operations, significant expansion plans in relation to its existing operations, geographic concentration risk arising out of presence in only one city - Agra.

Shares will be listed only at BSE.

The company is yet to obtain and maintain certain governmental and regulatory licenses.

For Up-Linking of TV Channels, the Company has made 3 applications to the Ministry of Information & Broadcasting in the name of “REAL NEWS”, “OCEAN TV” and

“YOUR TV” on August 12, 2010.  All applications are pending as on date.

The Company yet to apply to the National Highways Authority of India for permission to lay underground cables in areas in the city of Agra.

The Company is yet to place orders for Rs.4450.25 lacs, being 100% of the plant & machinery cost relating to the project.

Competition from DTH service providers. Companies like TATA SKY, DISH TV, BIG TV and other all India players are trying to have presence by using the DTH platform for providing TV programmes through satellite. The company also faces competition from other Multi System Operators (MSOs). The company operates in a highly competitive environment.

Threat of technological obsolescence.

The company does not own the registered trademark -“Sea TV”.

VALUATION AND RECOMMENDATIONS:

A small time MSO company. On a turnover of Rs 9.46cr for FY 10, the debtors outstanding are Rs 6.62cr (almost 70%). It is an indication of, how severe  is the competition. The company is demanding a valuation, around 45 times, its FY10 earnings. The valuation is sought, is equivaleant the valuation of some listed MNCs.

AVOID SUBSCRIPTION.

SENSEX DOWN 110 POINTS, METAL, AUTO AND BANK STOCKS ARE STRUGGLING

Benchmark Sensex is down 110 points in the morning one hour trade. The fall is led by metal, auto and bank stocks. Tata Steel is down 3%, Hindalco 2% and SSLT 1%. Among auto stocks Bajaj is down 2% and Hero, Maruti and Tata Motors  down 1% each. Similarly ICICI Bank, HDFC Bank, Axis and SBI bank shares are down between half a percent to one percent. Gainers among Sensex stocks include Infy, TCS, WIPRO and Sunpharma.

THE INDIAN HOTELS COMPANY TO RAISE RS 1000 CRORE

Tata Sons promoted The Indian Hotels Company plans to raise Rs 1000 crore rights issue. The company will be issuing compulsorily convertible debentures (CCD)on rights basis. For this purpose the company has sought regulator's nod. The rights issue will be managed by J M Financials, BofA- Merrill Lynch, SBI Capital Markets and Standard Chartered Securities. Link Intime are the registrar to the offer.

INFY EXECUTIVE CHAIRMAN GETS GLOBAL INDIAN AWARD

Infosys Executive Chairman NR Narayana Murthy has been with the 2014 -Canada India Foundation Chanchalani Global Indian Award, for his remarkable vision and leadership in the IT sector.

The award, which carries a trophy and a cash prize worth Rs 30 laks was presented to Murthy by Canadian Finance Minister Joe Oliver at the Canada India Foundation.

SKS MICRO FINANCE: BUY 1, GET 3 FREE

SKS Microfinance for the fiscal ended March 31, 2014, has posted a net profit of Rs 69.85 crore. 

Total income in FY14 stood at Rs 518.99 crore against Rs 332.19 crore in the previous fiscal.

Shares of SKS Microfinance closed at Rs 254 on the exchanges. SKS came IPO at Rs 985 in Aug 2010. It is almost 4 years the company's shares were listed on the exchanges. At IPO price now one will  get 4 shares, 3 shares free. 

IDEA'S NET JUMP BY 95%

Idea Cellular's  consolidated net profit jumped 94.65 per cent at Rs 1,967.82 crore for FY'14 compared to Rs 1,010.93 crore posted at the end of FY'13.

For the Jan-March quarter Idea Cellular posted a net profit at Rs 590 crore.
The stock closed flat at Rs 141 on the exchanges.

PRICES OF VEGETABLES AND MANGO'S TO COME DOWN SHARPLY

Since the 28-member European Union has temporarily banned the import of Alphonso mangoes, the king of fruits, and four vegetables from India from May 1, the prices of these items are expected to come down sharply.

Standing Committee on Plant Health examined  207 consignments of fruits and vegetables from India imported into the EU in 2013 were found to be contaminated by pests such as fruit flies and other quarantine pests.

However in India, every thing sells.

Aircel, RCom and Tata Tele tie up for 3G services

Telecom operators, Aircel, Reliance Communications and Tata Teleservices have agreed to provide 3G roaming services to each others customers using their network across country.

RCom and Aircel have license for 3G services in 13 out of 22 service areas while Tata Teleservices has license in 9 circles.

 

INDIA BULLS IPO : BULL STILL GRAPPLING IN THE DARK

Morgan Stanley, one of the leading investment bankers in the world managed the India Bulls Power IPO in 2009. The company issued shares at Rs 45 a piece. The IPO carried grade 3 awarded by leading rating agency - CRISIL. The IPO garnered whopping Rs 1700 crores. The shares are now trading around Rs 8.

This was our take on the IPO: 

Highly competitive capital intensive industry. The promoters have no experience in the power generation business.

Other points to note: The Company is yet to obtain some clearances. For Chattisgarh project the land is yet to be acquired. First unit to be commissioned in June 2012. Heavily indebted company. The promoters have acquired 118, 50, 00,000 shares at an average cost of Rs 5/.

IPO grading: The rating agency CRISIL has assigned Grade 3 indicating average fundamentals.

The company has no business track record. Hence share premium of Rs 35/ is not justified.

Recommendations: Considering the inexperience of the promoters, long gestation period and heavy indebtedness, investors may avoid subscription.

Bull is still grappling in the dark.

EURO MULTIVISION - IPO INVESTORS ARE NOW VISION LESS.

The Gujarat based Euro Multivision Limited, issued 88 lakh equity shares at Rs 75 a share in Sept 2009. The shares are now trading around Rs 1. Aanad Rathi Advisors were the BRLM to the offer. 

We had recommended the investors to stay away from the IPO in view of the following: 

The promoters have no experience in the chosen line. There is delay in implementing the project. Financials are not sound. Promoters’ contribution to share capital is at par. The issue is very aggressively priced. Avoid subscription. 

RAMDEV'S DALIT OUTBURST MAY COST BJP SOME SEATS

Ramdev's comments on Rahul's stay at dalit homes may cost some seats to BJP in Bihar, U P and other places where election is yet take place as dalits may vote against BJP.

The Butcher of Gujarat could not take care of his own wife. How will he take care of this great nation?- TMC

Butcher of Gujarat air-dropped into Bengal. He has no answers to Bengal’s development model. So, making personal attacks. The Butcher of Gujarat could not take care of his own wife. How will he take care of this great nation? Says TMC spokesperson Derek O’Brien.

RECORD NUMBER OF COMPANIES REGISTERED IN 2014

Political parties should check ROC data before lecturing on growth in the country. Nearly one lakh new companies were registered in the country last fiscal, with a substantial chunk set up in the business services sector. And 216 foreign companies were also set up during 2013-14 period.

AXIS BANK TO GO IN FOR STOCK SPLIT

Axis Bank will be splitting its Rs 10 FV shares into five shares of Rs 2 FV each. The stock has more than doubled in the past seven months — from a low of ₹764 that it touched in Sept last year to ₹1534,on Friday. The move will improve Axis bank stock's liquidity in the market.

RM Lodha sworn in as 41st Chief Justice of India

The senior most judge of the Supreme Court,  Justice R M Lodha, was yesterday sworn in as the 41st Chief Justice of India  by President Pranab Mukherjee.

Narendra Modi, Rahul Gandhi are corrupt monsters; need to be defeated: Manish Sisodia

AAP leader Manish Sisodia said it is necessary to defeat the BJP prime ministerial candidate Narendra Modi and Congress vice president Rahul Gandhi as they are “corrupt monsters”.

Both Modi and Rahul are monsters of a corrupt team. Till the time they are in politics, corruption cannot be ended. Both these monsters are involved in looting the country, Sisodia said at an election meeting in Amethi.

NSE NEWS: MOCK TRADING ON 03-05-2014

NSE will be conducting a mock trading (contingency) session in the Capital Market Segment on Saturday, May 03, 2014 as per the following schedule: 


Pre Open 10:00 hrs 10:08 hrs 

Normal Market 10:15 hrs 15:30 hrs 

Call Auction Illiquid session (5 sessions of 1 hour each)  10:30 hrs 15:30 hrs 

SME Call Auction Market  11:00 hrs 12:00 hrs 

Auction Market 14:00 hrs 15:15 hrs 

Closing Session 15:40 hrs 16:00 hrs 

Re-Login time 17:30 hrs 18:00 hrs 

IL&FS TRANSPORTATION NETWORKS RIGHTS ISSUE - AVOID.

In March 2010, IL&FS Transport Networks entered the primary markets at Rs 258 a piece. It carried IPO grade 4 awarded by CARE and Fitch. Enam Securities , Nomura Financial Advisory And Securities  And JM Financial Consultants were the BRLMs to the offer.   Even after 4 years the shares are trading at 47% discount to its offer price.

Where as the bench mark indices have gone up by more than 45% during the same period.   

We advise the investors to AVOID the offer.

DETAILS OF RIGHTS OFFER:

ISSUE OPENS / CLOSES ON	28-04 / 12-05-2014
NATURE OF OFFER	RIGHTS ISSUE OF 52,452,288 EQUITY SHARES
RATIO	27 EQUITY SHARES FOR EVERY 100 EQUITY SHARES HELD
OFFER PRICE	RS 100, INCLUDING PREMIUM OF RS 90
BRLMs	Axis Capital, CLSA, SBI CAPITAL MARKETS AND IL&FS CAPITAL ADVISORS
REGISTRAR	LINK INTIME
LISTING	BSE / NSE

UKRAINE SITUATION FORCES S&P TO CUT RUSSIA'S RATINGS

Standard & Poor's has cut Russia's rating to one notch above "junk" status.

Foreign investors continue to take money out of the country amid tensions over the situation in Ukraine.S&P downgraded Russia's rating to 'BBB-' from 'BBB'.

AXIS BANK'S NET GROWS AT 20%

Axis Bank has reported a net profit of Rs 6,218 crore, for FY14, an increase of 20% over the previous year.

The bank posted a net profit of Rs 1842 Cr for the March quarter, an increase of 18.5 per cent from a year earlier.

ICICI BANK'S CONSOLIDATED PAT AT RS 11041 CR.

ICICI Bank has reported profit after tax of Rs 2,652.01 crore in the quarter ended March 2014, an increase of 15 per cent from the same quarter a year ago at Rs 2,304.07 crore

For the full year the bank's profit after tax increased by 15 percent to Rs 11,041 crore.

NTT DoCoMo DISCONNECTS ITS CALL WITH TTSL

NTT DoCoMo, Japan’s biggest telecom operator  will sell its entire 26.5 per cent stake in Tata Teleservices Ltd (TTSL), thus exiting India five years after it entered the market.

The exit comes after the Indian company failed to achieve certain performance targets specified in the agreement between the two companies.

Buddhadeb says no Modi wave, bats for third front

Buddhadeb Bhattacharjee,  former chief minister of West Bengal, says that here is no Modi wave in West Bengal and he opines that there is a need for third front to assume power at center.

MARUTI'S NET DIPS

Maruti Suzuki  reported a net profit of ₹800 crore for the fourth quarter ended March 31, 2014, a drop of 35 per cent over the same period of the previous year.

The company's revenue stood at Rs 11,818 crore during January-March quarter, a drop of 9.50 per cent over the same period in the previous year.

For the whole year, Maruti, posted a net profit of Rs. 2853 Cr  where as the same was at Rs. 2469 Cr for the Year ended March 31, 2013. Total Income is Rs. 45281 Cr for the Year ended March 31, 2014, as against Rs. 45134 Cr for the Year ended March 31, 2013.

The stock closed at Rs 1956, down Rs 27 on Friday.

VIRGIN AUSTRALIA PLANE HIJACK DRAMA ENDS

A passenger who caused a hijack scare on a flight from Australia to Indonesia has been arrested at Bali airport, thus ending the drama.

KUPECA AGREES TO GOVT REQUEST, NO CHANGE FEE STRUCTURE.

Karnataka Unaided Private Engineering Colleges Association (KUPECA)  has acceded to the state government’s request to continue with the existing fee structure and seat matrix for engineering courses during 2014-15

The fees will be Rs 18,090 in government and government-aided institutions and Rs 38,090 and Rs 41,590 in private unaided and minority colleges respectively. 

WHY PRIMARY MARKETS IS IN DOLDRUMS?

In 2011,  as many as 37 companies got their shares listed in the exchanges. Out of the above only 7 are trading above the IPO price. Some IPOs are a trading at 90-95% discount to their respective offer price. Merchant bakers should explain to the investors why most IPO shares of 2011 are trading at a deep discount to their offer price. ( Between Jan 2011 and  March 2014, the bench mark indices have gone up by more than 35 percent )

The reason why our primary markets is in doldrums is, the retail investors have taken for a ride by merchant bakers and issuers. Is SEBI listening?

No.	Name of the issue	CMP	IPO Price (RS)
1	INDO THAI SECURITIES	12.15	74.00
2	FLEXITUFF INTERNATIONAL	225.70	155.00
3	ONELIFE CAPITAL ADVISORS	149.80	110.00
4	TAKSHEEL SOLUTIONS	3.00	150.00
5	M AND B SWITCH GEARS	-	186.00
6	RDB Rasayans	9.00	79
7	Prakash Constrowell	1.05	138
8	PG ELECTROPLAST	135.00	210.00
9	TD POWER SYSTEMS	277.55	256.00
10	SRS Limited	34.60	58.00
11	BROOKS LABORATORIES	22.65	100.00
12	TREE HOUSE EDUCATION & ACCESSORIES	310.00	135.00
13	L&T FINANCE HOLDINGS	68.55	52.00
14	INVENTURE GROWTH AND SECURITIES	9.90	Rs 117
15	BHARATIYA GLOBAL INFO-MEDIA	7.40	82.00
16	READY-MADE STEEL INDIA	270.00	Rs 108
17	BIRLA PACIFIC MEDSPA	-	10
18	RUSHIL DECOR	52.00	72.00
19	TIMBOR HOME	11.80	63.00
20	VMS INDUSTRIES	2.00	40
21	POWER FINANCE CORPORATION	190.00	203
22	AANJANEYA LIFE CARE( NOW  DR DATSON)	23.00	234.00
23	SANGHVI FORGING AND ENGINEERING	18.90	85
24	VASWANI INDUSTRIES	2.00	49.00
25	SERVALAKSHMI PAPER	2.30	29.00
26	INNOVATIVE INDUSTRIES	18.00	117.00
27	FUTURE VENTURES INDIA	5.90	6.00
28	PARAMOUNT PRINT-PACKAGING	.90	35
29	MUTHOOT FINANCE	170.10	175.00
30	SHILPI CABLE TECHNOLOGIES	23.40	69.00
31	PTC INDIA FINANCIAL SERVICES	16.70	28.00
32	LOVABLE LINGERIE	331.00	205.00
33	FINEOTEX CHEMICAL	-	70
34	ACROPETAL TECHNOLOGIES	3.95	90.00
35	SUDAR GARMENTS	21.00	77.00
36	OMKAR SPECIALITY CHEMICALS	129.00	98.00
37	MIDVALLEY ENTERTAINMENT	7.00	70