Recent research report - 30th Oct, 2013

• Emkay recommends to Buy DB Corp with Target Price 308. See report
• Edelweiss recommends to Buy Power Grid with Target price of 137. See report
• Morgan Stanley recommends to Buy Sesa Sterlite with Target price of 230+. See report

Happy Trading!!!

Money Times - Weekly magazine (28th Oct - 3 Nov)

Hello Friends,

I am sharing current edition of Money Times weekly magazine with stock ideas and views from different people.

Click here to see the magazine.

Happy Trading!!!

Buy Maruti Suzuki & Sell HUL - HDFC Securities

In the report published by HDFC Securities on 28th Oct, they recommend their client to SELL HUL with target price of 530 and Buy Maruti Suzuki with Target price of 1656.

Click the links below to see the full report.
HUL
Maruti Suzuki

Buy Tech Mahindra with target price of 1770 - Goldman Sachs

Buy Tech Mahindra with target price of 1770 - Goldman Sachs

Source of opportunity 
We add Tech Mahindra (Buy) to our regional Conviction List and raise our 12-month Director’s Cut-based target price to Rs1,770, implying 34% potential upside. We believe that since its merger with Satyam made it the fifth largest Indian IT services firm, TechM has gained adequate scale and capabilities to: (1) win large tickets deals through its position in the telecom vertical (the single largest offshore vendor globally) and ERP expertise in non-telecom verticals, (2) cross sell services across verticals as it has
minimal client overlap (2%). With six wins in past six months, it has begun
demonstrating the ability to win large deals, which is a key stock driver. 

Catalyst 
We believe that TechM’s revenue momentum will pick up over the next few
quarters as it executes the deal wins. We forecast 13%/30% US$ revenue/EPS
CAGR over FY13-FY15E driven by increased deal wins and (1) better utilization
levels, (2) improved fresher ratio and (3) INR tailwinds helping expand margins
over the next 2 years. We are 10%-15% above Bloomberg consensus on
EPS over FY14E-FY15E.

Key catalysts: 
(1) Announcement of large deal wins over the next 6 months (4 deals in the pipeline)
(2) Successful execution of large deals (like KPN-BASE) by FY15, leading to consensus upgrades. 

Key risks 
(1) Loss of BT contract
(2) unfavorable decision on pending court cases (downside risk of Rs84/share)
(3) Significant appreciation in INR. 

Click Here to read the full report.

Happy Investing!!!

Buy HDFC Bank with the target price of 740+

IDFC Securities recommends to Buy HDFC bank with the target price of 740+


Q2FY14 result highlights 

•  HDFC Bank’s Q2FY14 profit growth was +27%, and not its usual 30%. This was partly inevitable as growth slows down – for the bank, as for the economy and partly precipitated due to the volatile interest rate environment. While the quarter was probably soft, its operating fundamentals - asset quality, deposit mix and core profitability (PPOP ex-trading gains +28%) are still strong.  
• Loan growth was relatively slow at 16% yoy, 4% qoq. Corporate loans were up 5% qoq, but below trends for 2Q (+7-10% qoq). Retail loans grew steadily (+3% qoq, +17% yoy) but were driven more by unsecured loans as mortgage loans were not on-boarded in Q2FY14 – should normalize ahead.
• NIMs were down 30bp qoq (to 430bp) largely due to the higher cost of funding.We expect NIMs to stabilize at current levels.  
• Fee income growth was strong (+28% yoy), partly due to one-off gains on derivatives (Rs 0.6bn). Excluding this fee growth was still healthy at 23% yoy.  
• Cost control was a big focus in Q2 and reflected in sharply lower cost ratios. 
• Asset quality remained quite steady, with no increase in stress across product segments. Gross stressed assets remain low at 1.3% of loans.  

Key positives: Healthy fee income growth, stable asset quality, control on costs.
Key negatives: Relatively sharp decline in NIMs, slower loan growth.
Valuations & view

Click here to view full report.

Happy Investing!!!