Useful Research Reports published by various broking houses

Indiabulls Securities Research desk puts "Buy" ratings on SAIL

2009-07-04T00:31:00.000-07:00

Indiabulls Securities, in its latest research report on SAIL, has recommended "Buy" on the stock, citing renewal in demand and steep decline in coke prices which is used as a raw material.

According to the report, the steel demand in India is expected to grow by 2% vs decline of 15% in global demand. It expects the renewal in steel demand to help company in improving their revenues.

Another positive indicator is the steep decline in coke prices which is used as raw material in steel industry. SAIL imports around 70% of the total coke requirement and it accounts for 30% of the total cost incurred by the company. Hence, the reduction in coke prices would help the company in improving their margins. According to the report, SAIL has negotiated the coke prices with the vendors at about 60% less than the previous rates.

Thus, increase in demand and lowering of raw material cost would give dual-benefit to the company and hence, put 'Buy' ratings on the stock.

Indiabulls customers can login to the trading website or their desktop application Power Indiabulls (PIB) to read the detailed report.

Indiabulls Securities Research put "Buy' ratings on Aditya Birla Nuvo - 1 July 2009

2009-07-04T00:21:00.000-07:00

Indiabulls Securities, in its latest research report covering "Aditya Birla Nuvo" has recommended "Buy" ratings on the stock, citing revival in the businesses of its subsidiaries (Idea and Birla Sun Life).

Aditya Birla Nuvo has 27% stake in Idea - a major player in telecom sector. The report is bullish on telecom sector and expects Idea to grow at CAGR of 27%. Similarly, the company expects to earn through its Life Insurane and Mutual Funds subsidiary - Birla Sun Life Insurance. Birla Sun life bucked the slow trend in life insurance industry and able to increase new premiums by 44% y-o-y against industry average of (-) 3%.

Indiabulls customers can read the complete report by logging on the trading website or their desktop application Power Indiabulls (PIB).

Indiabulls Securities gives "Hold" ratings on Mphasis - 29th June 2009

2009-06-30T04:33:00.000-07:00

Indiabulls Securities, in its latest research report on Mphasis, has given "Hold" ratings on the stock, citing billing pressure from clients and current valuations as the major reasons of worry.

According to the report, the recession in the market is forcing the outsourcing vendors to reduce their billing rates. Also, hiring in BPO division could put pressure on the bottom line of the company.

On the positive side, the association with HP-EDS would help the company getting consistent business from them. HP-EDS accounts for 45% of company's revenues.

The report also suggests that the stock trades at forward PE of 13.7X for 2009E which indicates the fair price for the stock, hence recommending Hold ratings on the stock.

Indiabulls Securities recommends "Hold" in Bajaj Auto Limited - 26th June 2009

2009-06-30T04:20:00.000-07:00

Indiabulls Securities, in its latest research report, on Bajaj Auto, has given "Hold" ratings to the stock citing current valuations as the primary reason.

The report is cautiously optimistic on the sector and hopes that Bajaj's smart product mixture of premium segment models and its conventional economy model would help company gain further market share in two-wheeler segment.

According to the report, the stock is currently trading at PE of 14.3X and 12.2X for FY10E and FY11E which gives the fair value to the stock.

Indiabulls customers can logon to the trading website / Power Indiabulls application and visit Equity Analysis section to read the full report.

Indiabulls Securities gives "Hold" ratings on Tata Communications - 26th June 2009

2009-06-30T04:13:00.000-07:00

Indiabulls Securities, in its latest research on Tata Communication has given "Hold" ratings to the stock, citing the current valuations as the reason.

According to the report, company's revenue grew slugglishly by 4.3% y-o-y to Rs 8.9 bn due to poor performance of its voice business. The current valuations suggests fair price of Rs. 473 which doesn't provide any scope of further upside.

The report also talks about the five year voice deal with British Telecom which might increase the revenues from its voice business by as much as 25%.

To read the full report, Indiabulls customers can logon to the trading website or PIB and visit Equity Analysis section.

Goldman Sachs recommends Sell on Reliance Power - 16 June 2009

2009-06-18T11:09:00.000-07:00

Goldman Sachs, in its latest research report on Reliance Power, recommends "Sell" ratings, citing expensive valuations and possible delays in the completion of projects.

According to the report, the stock is currently trading at FY11 E P/B of 3.4X, which is atleast 20% of its peers. Even if new benefits of court ruling is considered, the stock is still trading at least 30% premium to its valuations.

The report also mentions about the delay in projects as ongoing dispute between RNRL and RIL is going murkier with each passing day.

On the basis of these parameters, Goldman Sachs recommends "Sell" on Reliance Power.

IIFCL puts "Underweight" on Steel sector - 15th June Report

2009-06-16T08:22:00.000-07:00

IIFL in its latest research report, is "Underweight" on Indian Steel sector, citing current valuations and slow in the global demand.

The report indicates that current rise in steel stocks (of about 200%) makes them quite expensive in terms of valuations, as revenues are likely to get hit due to slow global demand.

Stay away from steel stocks!!!

Indiabulls Securities recommends "Hold" ratings on Bharti Airtel - 22nd May 2009

2009-06-14T07:39:00.000-07:00

Indiabulls Securities in its latest research report has recommended "Hold" ratings on Bharti Airtel, citing current valuations as the rationale behind it.

The company is among the best in the telecom industry, but faces key challenges from the new entrants and hence, customer retention will be a big challenge for the company in the near future.

According to the report, the stock is trading at forward PE in excess of 15X FY10E, which makes it stand at reasonable valuations. Thus, it recommends "Hold" on this stock.

Indiabulls clients can read this report on their trading website or by logging to their desktop software application "Power Indiabulls (PIB)".

Indiabulls Securities recommends Buy on ABB - 21st May 2009

2009-06-14T07:30:00.000-07:00

Indiabulls Securities in its latest research report has recommended "Buy' ratings on ABB, citing renewed focus by government on executing new power projects in the near future.

According to the report, the company's net profit declines by 33% Q-o-Q basis. Also, company's exit from rural electrification business also led to lose in revenues for the company. But, analysts are hopeful after the formation of stable government and expect government to put renewed focus on power projects.

The report also suggests increase in order inflows for the company and hence, recommends buy for the company.

Indiabulls clients can read this useful report by logging into their trading website or their trading platform Power Indiabulls (PIB).

Nomura revises price target for Tata Steel from 295 to 405

2009-06-13T22:36:00.000-07:00

Nomura in its latest research report has revised the price target for Tata Steel from Rs. 295 to Rs. 405, citing improved market conditions. But this price is around 20% discount to its current value.

According to the research report, domestic consumption for steel continues to be robust, but Corus will be a laggard and hence, put pressure on company's financials. Another concern that has been raised is on the highly leveraged balance sheet, on account of Corus acquisition.

Indiabulls Securities recommends Sell on MTNL

2009-06-10T11:37:00.000-07:00

Indiabulls Securities in its latest research report on MTNL, recommends SELL ratings on the stock, primarily due to weak quarterly results, slipping market share in both wireline and wireless services and increasing expenses due to higher staff cost.

The report suggests decline in Average Revenue per User (ARPU) for the company which is likely to put pressure on the company's bottomline. Also, the company is losing the market share due to rigid structure which would further make this company unattractive to put the money in.

This report is available free of cost to Indiabulls customers. They can login to the trading website or to their desktop trading application 'Power Indiabulls' and view the report in Equity Analysis section.

Morgan Stanley Whitepaper on Indian economy - 2nd June 2009

2009-06-10T11:20:00.000-07:00

Morgan Stanley in its Whitepaper has shown optimism on Indian economy catching up with its Chinese counterpart in the coming years.

The Whitepaper talks about robust micro story for Indian economy including outstanding enterpreneurs, world class IT professionals, fluent English speaking population, transparent financial markets, etc. But, it lacks at macro level including Infrastructure, FDI and Government Disinvestment.

If you wish to read the complete story, just drop in your email ID in the comments. I will share it with you soon!!

Quantum Mutual Funds predicts 21000 levels on Sensex by July 2010

2009-06-10T11:14:00.000-07:00

Quantum Mutual Funds in its latest research report on Indian Equity Markets, has a bullish view. The fund is predicting benchmark index Sensex to go back to historic highs of 21000. The rationale given by them behind this prediction is the stable government, lowest Export / GDP ratio among BRIC countries and disinvestment process that the new government is likely to take.

According to the report, indian equity markets have underperformed the BRIC economies Year-till-date (YTD) due to political uncertainity. But now when markets favorable government coming into picture, one expects markets to catch up with BRIC economies.

In case, one is interested in reading complete research report, one may drop a comment carrying its email-address.

Wishing you a great investing time!!

Indiabulls Securities recommends Sell on United Breweries - 12th May 2009

2009-06-10T10:49:00.000-07:00

Indiabulls Securities, in its latest research report on United Breweries, has recommended Sell ratings, citing high leverage levels and expensive valuations.

According to the research report, results have been above expectations, primarily led by reduction in employee costs and advertising revenues. The broking house has raised concerns on high Debt-to-EBITDA ratio of 4X. Besides, the current valuations do not justify the stock price and hence, recommended Sell on this stock.

This stock is available to Indiabulls clients after logging into their website https://trade.indiabulls.com or using their advanced trading application 'Power Indiabulls (PIB)'.

Religare Securities recommends BUY on Dishman Pharma - 27th May

2009-06-10T10:43:00.000-07:00

Religare Securities, in its latest research report on Dishman Pharma, has recommended BUY ratings, citing improved margins and attractive valuations as the main rationale behind it.

According to the research report, the company's net sales have increased by 23% and Adjusted PAT by 17.7% Y-o-Y which are among the best in the industry. In valuation terms also, the stock is trading at PE multiple of 9X which is 4x less than industry levels.

Religare clients can read the complete research report in Research section.

BNP Paribas recommends Buy on Bharti Airtel - MTN merger

2009-06-10T10:23:00.000-07:00

BNP Paribas, in its latest research on Airtel - MTN merger, recommends buy ratings, on the basis of global presence for Bharti, especially in emerging markets like Middle east and Africa.

The research house is also hopeful that the Bharti would be easily able to handle the debt that is likely to increase to buy out the company.

The report may be found on BNP Paribas website www.bnpparibas.co.in

Sharekhan recommends Buy on 3i Infotech

2009-06-10T08:40:00.000-07:00

Sharekhan in its latest research report for June has recommended Buy on 3i Infotech, citing its diversified business model, which enables company garnered 43% of its revenues from emerging Asian economies.

The report also talked about the order book in excess of 1000 crores, which makes position just fine for the company. Though, the research house raised concerns on the high leverage which would stress the future earnings.

Sharekhan users read the full report on their trading website under Top Picks section.

Indiabulls Securities recommends Hold ratings on YES Bank

2009-06-10T08:28:00.000-07:00

Indiabulls Securities, in its latest research report on YES Bank, has recommended Hold ratings on the basis of current valuations.

According to the research report, NPAs for the bank is likely to increase in the coming days, but it is making adequate provisions for the same. However, bank's non-interest income, which holds the major chunk of revenues likely to see recovery in the backdrop of improved capital market conditions.

Indiabulls clients can read the full report by logging to their trading website or its properitory advanced trading platform 'Power Indiabulls'.

Indiabulls Securities recommends Buy ratings on Canara Bank

2009-06-09T03:42:00.000-07:00

Indiabulls Securities, in its latest research report on Canara Bank, has recommended Buy ratings on the stock the basis of its current valuations.

The various research reports by other brokers as well, have talked about attractive valuations for the Indian banks. Price-to-Book value has been extremely low for Indian banks, which make them a compelling buy by most of the fundamental analysts.

Indiabulls research report has also shown optimism on the bank's net profit margins, and marked it as among the best in the industry. Though, the concerns on future earnings and detoriating asset quality would like to put pressure on the earnings of Canara Bank, accoding to the research report.

This report is available for Indiabulls clients only. They can read the report by logging onto the trading website or can login to Power Indiabulls application and read the report. Power Indiabulls is an online trading application provided by Indiabulls for its clients.

Indiabulls recommends Sell on ACC - 7th May 2009

2009-06-09T03:04:00.000-07:00

Indiabulls Securities, in its research reports on ACC, has recommended Sell ratings, citing over-supply and less demand as the major areas of concern.

The broking house also raised concerns on the company's expansion plans in South India on the backdrop of less demand in that region. Also, the current valuations is quite expensive according to the broking house.

According to the report, the stock is currently trading at a forward P/E of 10.0x for CY09 and a price-to-bookmultiple of ~2.3x. The fair value calculated by them gives an estimate of Rs. 576 which reflects a downside of 30% from the current market price.

Indiabulls clients can read the complete research report by logging into their trading website https://trade.indiabulls.com. Power Indiabulls clients can go to Equity Analysis section under Products menu to read this report.

Indiabulls recommends Sell on Idea Cellular - 7th May2009

2009-06-09T02:34:00.000-07:00

Indiabulls Securities in its research report on IDEA CELLULAR on May 07 has recommended 'Sell' ratings, citing decline in the margins as the major cause of worry.

According to the report, ARPU (Average Revenue per User) for the company has declined by more than 11% Y-o-Y. Further, the current valuations do not justify the buy ratings as it is already trading at the PE multiple of 28X.

Indiabulls clients can view the research reports by logging into their trading website and visit Equity Analysis section. Power Indiabulls (PIB) customers may find Equity Analysis option under Products menu.

Happy Investing!!

Indiabulls recommends Hold on Reliance Industries - May 5 2009

2009-06-09T02:23:00.000-07:00

Indiabulls in its research report published on 5th May 2009 recommends Hold ratings for Reliance Industries on the basis of current valuations.

The broking house is positive on RIL-RPL merger that is likely to happen sometime in June 2009. It is also hopeful on early resolution of gas supply dispute, hence, giving the stock futher impetus.

Though, the concerns on its current valuations prompted Indiabulls to recommend Hold ratings for this stock.

Indiabulls clients can read the full report by logging in to Indiabulls trading website...