Generations of Trust & Commitment
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Generations of Trust & Commitment

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Generations of Trust & Commitment




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Presentation on theme: "Generations of Trust & Commitment"— Presentation transcript:

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Generations of Trust & Commitment

ULJK Group

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ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Positive :Current market turmoil has resulted in attractive valuations for the banking stock. Source: BloombergPrivate banking stocks are targeting a credit growth of ~25% which is higher than RBI target of 20%. Most of the banks have raised capital in recent past which will help them to achieve the targeted growth rate and also maintain their CAR well above the required level of 9%.Consolidation activities are expected to increase in the banking sector in next financial year as foreign banks will be allowed greater operation flexibility in the economy. This may result in re -rating of the banking stocks. Listing of subsidiaries will result in value unlocking for the shareholders, which gives value investment opportunities for the long term investors.Concern:RBI is targeting money supply to control the inflation; any further increase in repo rate/CRR may negatively impact the NIMs of the banks, thereby affecting the profit growth.

Banking Sector

BanksPriceP/E-FY10EP/BV-FY10EState Bank12807.81.1ICICI Bank7319.91.5HDFC Bank113116.92.5Axis Bank68113.42.2

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

Trust & Commitment

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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The IT sector is still a Positive sector : Source: Bloomberg Reasons:The guidance given by the Infosys for the FY09.The closure of the deals by many companies in the recent period.The extension of the tax exemption by the govt. can safeguard the bottom line.The predictions by economists says that the rupee may depreciate further in future along with latest depreciation of 5%-6% in the last 4-5 weeks. Key Risks:The unexpected deterioration of the US economy.Rupee Appreciation.

Technology Sector

IT Large CapPriceP/E-FY10EEPS-FY10E Infosys188415.1125 Wipro47514.634.9 Satyam48112.641.8 TCS89313.175.7

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

Trust & Commitment

Slide9

Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Power Sector

To optimally power the nation by 2012Government of India’s ambitious target to provide “Power to All” will demand additional power generation capacity of ~119,000 MW by 2012.Rs 400,000 crore of investment is required in the power generation segment in the 11th Plan period. Additional Rs 300,000 crore worth investment is demanded in the power distribution and transmission segment. Total investment in power sector ~ Rs 10,60,000 crore.Private Public Partnership (PPP) will create opportunities for the private sector growth. Promoters of private sector companies with large net worth are now interested in power as ~90% of the power generated since independence is required to be generated in the next 5 years. (2008-12) As power sector being a priority sector and private sector participation high; the industry would not be largely impacted by worldwide slowdown. Concerns: Political: 2009 year of elections

Estimates for FY 2009CompanyEPSP/EPEGP/SalesP/Cash FlowROENTPC 10.04 16.091.23.2311.7516.0%TATA POWER 33.92 38.112.053.7728.5715.3%Power Grid 4.54 18.971.185.539.1811.2%Lanco 33.66 10.350.131.086.8114.1%

Source: Bloomberg

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

Trust & Commitment

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

13

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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Shipping & Offshore

Day rates are seen firm on account of long gestation period for new assets, rig deficit accompanied by increasing number of rigs set for replacement due to ageing factor. Present oil prices have touched all time high of USD 139 per barrel & E&P spend expanding Low addition to rig fleet; it takes 2 to3 years to build a new rigDay-rates are surging in all regions due to worldwide supply deficit . Market for rigs: Middle East; Demand coming in mainly from Saudi Arabia; South East Asia; Increased activity in the region is fuelling rising demand in the sector. India also has large unfulfilled requirement Large private sector players like Reliance, Cairn, Niko, Hardy Exploration, British Gas, GAIL, GSPCL into the exploration sectorRecently Aban Offshore renewed Contracts with ONGC for 3 rigs; the renewed rates were up to double the existing contract rates. The day rate for deep water rigs has gone up from $1,00,000 to over $7,00,000 in the last couple of years. Recently, day rate sealed for Aban’s jack-up rig Murmanskaya under new contract in April was up from over $1,95,000 per day to about $2,12,500. Major players Aban Offshore, Great Offshore, Jindal, Mercator is a new entrantCMP: Aban @ Rs 3410, Mercator @ Rs 116, Great Offshore @ Rs 608.Aban Offshore is trading at a PER of 10 X its FY10 EPS of Rs 400.4 and PER of 7X its FY10 earnings.Mercator Lines is trading at a PER of 7.9X its FY09 EPS of 15.2 and PER of 4.7X its 2010 EPS of 23.39.

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

Trust & Commitment

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Trust & Commitment

ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

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ULJK Group

Since 1903

Merchant Banking, Equities, Derivatives & Commodities Broking House

Trust & Commitment

THANK YOU

DISCLAIMER

This report has been prepared by the research department of ULJK Securities

Pvt

Ltd. and is for information purposes only. This report is

notconstrued as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It is for the general information of clients of ULJK Securities Pvt Ltd. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients.  This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. The report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon. ULJK Securities or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. ULJK Securities or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The recipients of this report should rely on their own investigations. ULJK securities and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Opinions expressed are our current opinions as of the date appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this report. 

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