BIG BOSS
VIKAS PARSHURAM SAMWATSARE
Buy Tata Global Beverages Ltd. For Target Rs.180
Tata Global Beverages Limited (TGBL)(formerly Tata Tea Limited) is an Indian multinational non- alcoholic beverages company headquartered in Kolkata and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee. TGBL markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA. Tata Tea is the biggest-selling tea brand in India, Tetley is the second biggest-selling tea brand in the United Kingdom and Canada and the second bigges t-selling in the United States and JEMČA is the biggest- selling tea brand in the Czech Republic. TGBL ventured into the Indian cafe market with a 50:50 joint venture with Starbucks Coffee Company. The coffee shops branded as "Starbucks Coffee - A Tata Alliance" will source coffee beans from Tata Coffee, a subsidiary company of TGBL.
Brand Strength
Majority of TGBL’s revenues ie ~70% comes from tea. Tea revenues have grown at a CAGR of 9.2% between FY08-FY13. This kind of healthy growth has been aided by its commanding position in India (22% value share of Tata Tea), Canada (Tetley), UK (27% value share of Tetley), acquisition of leading brands across the globe, Joekels in South Africa (third largest player), Good Earth in US (21% volume share), Jemca in Czech Republic (which is the market leader) and Vitax in Poland (16% share of fruit tea market). Given its strong portfolio across the globe and shift of consumers from coffee to tea due to health benefits of tea vis-à-vis coffee, we believe that TGBL would continue to grow its tea revenues at the same pace further. Most of the tea markets that it caters to are in a nascent stage thereby providing scope for robust growth.
Kenyan prices eased
Majority of Tetley Tea’s requirement is sourced from Kenya. Since Kenyan tea prices have eased by ~25% on a Y-o-Y basis till July 2013 it will help TGBL lower it’s raw material cost across geographies which would also help support it’s margins. TGBL also initiated price increase in the Tetley markets like Canada & Australia in FY13 & FY12 respectively. Eight o’ Clock (EoC), is the company’s branded coffee subsidiary in US. This subsidiary is showing improvement in profitability as price of Columbian Milds Arabica coffee bean (EoC’s raw material) corrected 17.5% from FY13 average prices of 185 cent/lbs.
Growth Opportunity
TGBL has substantial growth opportunity not only in India but across the globe. Acquisitions & partnerships with Starbucks & Pepsico offer a huge market potential for the company as it can market it’s products in local & global markets.With the help of JV with PepsiCo TGBL has entered it’s water business too thus expanding its product portfolio. The two packaged drinking water brands launches in certain cities in India are Tata Water Plus & Tata Gluco Plus. Tata water plus has also become the largest selling packaged water in Chennai.
Valuation
At CMP of `160 the stock is trading at 20.4x & 17.4x it’s FY14E & FY15E EPS which we believe is attractive. We attach an exit P/E multiple of 19.5x it’s FY15E EPS of `9.21 per share. Based on our valuation we arrive at the target price of `180 with a BUY rating & a potential upside of 12.5%.
Hold State Bank of India (SBI) For Target Rs..2360
Loan growth was up 16.1% y-o-y aided by healthy growth seen across large corporate, SME and International loan book. Deposits grew 15.6% y-o-y, CASA ratio falls to 45.5%.
* Net Interest Income (NII) registered negative growth of 3.2% to Rs 111.5 bn (vs. Rs 115.1 bn in Q3FY12). NIMs declined by 44 bps y-o-y and 5 bps sequentially to 3.40%.
* Asset quality continues to remain a major concern for the bank as GNPA increased by 15 bps sequentially & 69 bps y-o-y, respectively. Fresh slippages were Rs 81.7 bn vs. 71.0 bn in Q2FY13, lower cash recoveries were seen at Rs 9.5 bn vs. Rs 14.2 bn in Q2FY13.
Result Highlights:
Loan growth aided by increased lending to Large Corporates, SME and International customers:
Loan book growth was in-line with our expectations, as they grew 16.1% y-o-y to Rs 10,091 bn, mainly driven by increased lending to International and Large Corporate segments. International segment loan book grew 28.4% y-o-y to Rs 1,721.5 bn (17.1% of Q3FY13 loan book). Also, Large Corporate & SME segment witnessed 25.8% & 17.8% y-o-y increase in loan book to Rs 1,566.8 bn & Rs 1,586.0
bn, respectively. Notably, Mid-Corporate segment (17.3% of Q3FY13 loan book) witnessed just 6.8% (one of the slow-growth segments) growth to Rs 1,750.3 bn.
Valuation
SBI’s performance has been broadly in-line with expectations on the operating front. However, on the asset quality front, mainly higher restructuring surprised us. Though fresh slippages were in-line with expectations, recoveries and up-gradations were higher than what was anticipated. Also, lower loan loss provisioning worries us a bit as there exists a possibility for it to go up in Q4FY13, too. NIMs were broadly
stable at 3.4% levels, but we expect it to improve going forward on a/c of some more liquidity to be deployed in Q4FY13E.
At CMP of Rs 2,233, based on street estimates, the stock is trading at consolidated FY13E and FY14E, P/ABV of 1.33x & 1.15x, respectively.
We maintain HOLD rating on the stock with price target of Rs 2,360, implying 1.22x FY14E P/ABV multiple (on consolidated basis).
Buy Va Tech Wabag Ltd. For Target Rs.570
VA Tech Wabag is one of the few pure play water and waste projects companies in India.
* Order intake has been robust in the current fiscal and the company is ontrack to meet its guidance.
* At the current price of Rs 463, the stock is trading at 11.5x and 9.5x FY14 and FY15 earnings respectively.
* Our rating considers the strong financial profile of the company characterized by a technocrat management, focused play on water sector, improving order backlog and significant cash reserves.
Recommendation
* At the current price of Rs 463, the stock is trading at 11.5x and 9.5x FY14 and FY15 earnings respectively.
* Our rating considers the strong financial profile of the company characterized by a technocrat management, focused play on water sector, improving order backlog and significant cash reserves.
VIKAS PARSHURAM SAMWATSARE
Buy Tata Global Beverages Ltd. For Target Rs.180Tata Global Beverages Limited (TGBL)(formerly Tata Tea Limited) is an Indian multinational non- alcoholic beverages company headquartered in Kolkata and a subsidiary of the Tata Group. It is the world's second-largest manufacturer and distributor of tea and a major producer of coffee. TGBL markets tea under the major brands Tata Tea, Tetley, Good Earth Teas and JEMČA. Tata Tea is the biggest-selling tea brand in India, Tetley is the second biggest-selling tea brand in the United Kingdom and Canada and the second bigges t-selling in the United States and JEMČA is the biggest- selling tea brand in the Czech Republic. TGBL ventured into the Indian cafe market with a 50:50 joint venture with Starbucks Coffee Company. The coffee shops branded as "Starbucks Coffee - A Tata Alliance" will source coffee beans from Tata Coffee, a subsidiary company of TGBL.
Brand Strength
Majority of TGBL’s revenues ie ~70% comes from tea. Tea revenues have grown at a CAGR of 9.2% between FY08-FY13. This kind of healthy growth has been aided by its commanding position in India (22% value share of Tata Tea), Canada (Tetley), UK (27% value share of Tetley), acquisition of leading brands across the globe, Joekels in South Africa (third largest player), Good Earth in US (21% volume share), Jemca in Czech Republic (which is the market leader) and Vitax in Poland (16% share of fruit tea market). Given its strong portfolio across the globe and shift of consumers from coffee to tea due to health benefits of tea vis-à-vis coffee, we believe that TGBL would continue to grow its tea revenues at the same pace further. Most of the tea markets that it caters to are in a nascent stage thereby providing scope for robust growth.
Kenyan prices eased
Majority of Tetley Tea’s requirement is sourced from Kenya. Since Kenyan tea prices have eased by ~25% on a Y-o-Y basis till July 2013 it will help TGBL lower it’s raw material cost across geographies which would also help support it’s margins. TGBL also initiated price increase in the Tetley markets like Canada & Australia in FY13 & FY12 respectively. Eight o’ Clock (EoC), is the company’s branded coffee subsidiary in US. This subsidiary is showing improvement in profitability as price of Columbian Milds Arabica coffee bean (EoC’s raw material) corrected 17.5% from FY13 average prices of 185 cent/lbs.
Growth Opportunity
TGBL has substantial growth opportunity not only in India but across the globe. Acquisitions & partnerships with Starbucks & Pepsico offer a huge market potential for the company as it can market it’s products in local & global markets.With the help of JV with PepsiCo TGBL has entered it’s water business too thus expanding its product portfolio. The two packaged drinking water brands launches in certain cities in India are Tata Water Plus & Tata Gluco Plus. Tata water plus has also become the largest selling packaged water in Chennai.
Valuation
At CMP of `160 the stock is trading at 20.4x & 17.4x it’s FY14E & FY15E EPS which we believe is attractive. We attach an exit P/E multiple of 19.5x it’s FY15E EPS of `9.21 per share. Based on our valuation we arrive at the target price of `180 with a BUY rating & a potential upside of 12.5%.
Hold State Bank of India (SBI) For Target Rs..2360Loan growth was up 16.1% y-o-y aided by healthy growth seen across large corporate, SME and International loan book. Deposits grew 15.6% y-o-y, CASA ratio falls to 45.5%.
* Net Interest Income (NII) registered negative growth of 3.2% to Rs 111.5 bn (vs. Rs 115.1 bn in Q3FY12). NIMs declined by 44 bps y-o-y and 5 bps sequentially to 3.40%.
* Asset quality continues to remain a major concern for the bank as GNPA increased by 15 bps sequentially & 69 bps y-o-y, respectively. Fresh slippages were Rs 81.7 bn vs. 71.0 bn in Q2FY13, lower cash recoveries were seen at Rs 9.5 bn vs. Rs 14.2 bn in Q2FY13.
Result Highlights:
Loan growth aided by increased lending to Large Corporates, SME and International customers:
Loan book growth was in-line with our expectations, as they grew 16.1% y-o-y to Rs 10,091 bn, mainly driven by increased lending to International and Large Corporate segments. International segment loan book grew 28.4% y-o-y to Rs 1,721.5 bn (17.1% of Q3FY13 loan book). Also, Large Corporate & SME segment witnessed 25.8% & 17.8% y-o-y increase in loan book to Rs 1,566.8 bn & Rs 1,586.0
bn, respectively. Notably, Mid-Corporate segment (17.3% of Q3FY13 loan book) witnessed just 6.8% (one of the slow-growth segments) growth to Rs 1,750.3 bn.
Valuation
SBI’s performance has been broadly in-line with expectations on the operating front. However, on the asset quality front, mainly higher restructuring surprised us. Though fresh slippages were in-line with expectations, recoveries and up-gradations were higher than what was anticipated. Also, lower loan loss provisioning worries us a bit as there exists a possibility for it to go up in Q4FY13, too. NIMs were broadly
stable at 3.4% levels, but we expect it to improve going forward on a/c of some more liquidity to be deployed in Q4FY13E.
At CMP of Rs 2,233, based on street estimates, the stock is trading at consolidated FY13E and FY14E, P/ABV of 1.33x & 1.15x, respectively.
We maintain HOLD rating on the stock with price target of Rs 2,360, implying 1.22x FY14E P/ABV multiple (on consolidated basis).
Buy Va Tech Wabag Ltd. For Target Rs.570 VA Tech Wabag is one of the few pure play water and waste projects companies in India.
* Order intake has been robust in the current fiscal and the company is ontrack to meet its guidance.
* At the current price of Rs 463, the stock is trading at 11.5x and 9.5x FY14 and FY15 earnings respectively.
* Our rating considers the strong financial profile of the company characterized by a technocrat management, focused play on water sector, improving order backlog and significant cash reserves.
Recommendation
* At the current price of Rs 463, the stock is trading at 11.5x and 9.5x FY14 and FY15 earnings respectively.
* Our rating considers the strong financial profile of the company characterized by a technocrat management, focused play on water sector, improving order backlog and significant cash reserves.
14/10/2013 stocks news
SAMWATSARE
SA
Yessssssssss
India is talking with JP Morgan and others to gain entry to benchmark
indexes for emerging market debt in hopes of attracting billions of
dollars in investment and may ease some restrictions on foreign inflows
in order to do so.
Finance Minister P. Chidambaram and other officials plan to meet next
week in the United States with big fund managers that track such indexes
including Pimco, Capital International and Standard Life, one of the
sources with direct knowledge of the matter said.
To qualify for entry into the widely-followed JP Morgan Government Bond
Index - Emerging Markets, India needs to ease rules on registration,
documentation, due diligence rules for the entry of foreign
institutional investors (FIIs) in the Indian debt market, besides
allowing them to invest more in the government debt.
With a wide current account gap and a weakened rupee, India wants to
attract some of the billions of dollars managed passively by tracking
global indexes. However, Indian restrictions limit foreign investment in
onshore debt, which exclude it from indexes managed by JP Morgan and
others.
ndia has been taking steps to ease investment rules but is also skittish
about fully removing limits given worries about the volatility of
global flows. Its credit rating also stands just one notch above junk
status, although a downgrade would not disqualify it from an emerging
market index.
Inclusion in popular government bond indexes could attract $20
billion-$40 billion in additional flows into India over a year, Standard
Chartered Bank wrote in a report last month.
Trade deficit fell to a 30-month low in September to $6.7 billion, thanks to a sharp drop in imports.
Imports plummeted by 18.10 per cent to $34.43 billion primarily due to
lower crude oil and gold imports. Exports during the month rose 11.15
per cent to $27.64 billion.
Gold imports fell 82 per cent to $0.8 billion from $4.5 billion in the
year-ago period. Apart from the import duty hike, lack of clarity on the
RBI’s gold import norms served as a deterrent to import of the yellow
metal.
Oil imports in September declined 5.94 per cent to $13.19 billion, while
non-oil imports declined 4.55 per cent to $149.35 billion.
Hiking import duties on gold, silver and platinum and restricting import
of LCD televisions are among measures the Government took recently to
check the widening current account deficit and the falling rupee .
Friends
You All Know Our Aim to Teach You Every Lesson Of Stock Market For This
We Brings Educational Lesson of Stock Market Time to Time .
This Time We Bring For Your Education Dot Com Bubble of U.S.A. of Year 2000.
Benjamin Graham
(May 8, 1894 – September 21, 1976)
British-born American professional investor. Graham is considered the
father of value investing. Graham's followers include Warren Buffett,
William J. Ruane, Irving Kahn, Walter J. Schloss, Prem Watsa and others.
Buffett, who credits Graham as grounding him with a sound intellectual
investment framework.
B. Graham Once Said ....
(The cheap stocks may later become over priced ; The expensive stocks
may turn cheap. at some point in its life almost every stock is a bargin
; at another time , it will be expensive . Although
there are good and bad companies ,there is no such things as a good
stock;there are only good stock price , which come and go)
On Nov. 30, 1999 Yahoo Inc's Stock Closed at $ 212 up 80% the Year
Began. By Dec. 7, the stock was at $348 a 64% gain in five trading
session.Yahoo kept whooping along through year - end , closing at 433$
on Dec. 31 . In a single month , the stock had more than doubled.Total
market value of Yahoo Reach $ 114 Billion. Yahoo's PE Ration Rise to
3264 Times.
After the dot-com bubble bust Yahoo Lost Its Value by 93 % In Next 2 Year.
BUT HOW CAN IT BE WON????
FOR THIS JUST JOIN
(Train For Every Investor)
IF YOU TRY!!!!!!!!
.............YOU MAY WIN OR YOU MAY LOSE.........
...............IF YOU NOT TRY YOU NEVER WIN ..............
The
investment ideas of Warren Buffett is most basic and simple to
implement. The beauty of his investment ideas is that they are so easy
and logical that at timespeople overlook the
same ideas even though it must have crossed their mind. These investment
ideas of Warren Buffett has not only help the maestro to make billions
but also stands as a guiding principles for every other investor of this
world.
Warren Buffett’s investment ideas asks us to buy stocksof
only those companies whose “fundamentals” are very strong and its stock
is available at “undervalued price”. When we say strong fundamentals we
mean a healthy financial report, unique product line which is run by
exceptional managers.
Think Big TO EARN BIGGG
SAMWATSARE
What To Do Today..........
Our Opininon for Today's Market.......
1.Market Looks Volatile.....
1.Some Insider Say NIfTy go up to 6200
What To Do Today........
Nifty....Today Face Resistence at......6095...6133..6182
Nifty.....Today Support at ...5945...5902...5852
Nifty Range...4200--------6600
SAMWATSARE RESEARCH......
NEXT TGT FOR
Sell Nifty Around 6200/6300
Our Opininon for Today's Market.......
1.Stock Specific Movement Expected Today ......
2.Midcaps Looks Good....
INTRADAY HOT STOCKS: 14/10/2013
buy axis bk sl1050 tgt 1140/1180
BUY BATA TGT 880/900 SL 850
BUY RIL SL 840 TGT 880/900
BUY DLF AB 143 TGT 153/158
BUY ROM SL 147 TGT 153/157/160
BUY FT SL 160 TGT 175/180/190
UP SIDE WE HAVE EXIT CHANCE NO FRESH BUYING
L&T FINANCE HOLDINGS
(BSE TICKER-533519@ Rs.83/-)
Yeessssssssssssssssssssssssss
RBI TO ANNOUNCE NEW BANK LICENCE SOON
L&T HOLDINGS EXPCTED TO GET FIRST BANKING LICENCE !!!!
Rs.120/- Rs.150/-
Alert:- Our Subscriber's Long in Stock!!!
ZEE ENTRTAINMENT
(Bse Ticker-505537@ Rs.242/-)
Yessssssssss
BIGGEST BULL RUN YET TO START!!!!
TARGET
Rs.800/- Rs.1200/-
NO IF & BUT!!!
SUVEN LIFE
(Bse Ticker-530239@ Rs.43/-)
Great--Great Breakout On Chart!!!!!
Yesterday Stock Closing Above Rs.36.30 Now Stock Heading to Rs.60/-
Company Also Declare Great Result!!!!
TARGET
Rs.55/- Rs.60/- SL Rs.32/-
Alert:--
In First Week Of September We Gave Buy Call On Suven Life @ Rs/38/- Stock Rise Almost 30% In Newt 3-4 Trading Session!!!!
Forget Short Term Movment
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