INVESTORS PLEASE LISTEN !

Tuesday, March 3, 2009

[Investors Please Listen] HDFC REVISES DEPOSIT INTEREST RATES ON HDFC LTD

HDFC LTD – REVISES INTEREST RATES W.E.F 05/03/2009

SCHEME	05/03/2009	12M	24M	36M	48M	60M
HDFC (Ind& HUF) (Min.dep.20000)	05/03/2009	8.95	9.20	8.95	8.95	8.95
HDFC (SR.Citizen) -Min deposit -20,000	(0.25% extra incl)	9.20	9.45	9.20	9.20	9.20
SPECIAL SCHEMES	Tenure (Months)	IND	SR.CIT
HDFC LTD - DEPOSITS :-		Annual/Cum	Ann/Cum
HDFC (Premium Deposits) - 15 mths	15 M	09.05	9.30
HDFC (Premium Deposits) - 30 mths	30 M	09.55	9.80
HDFC (Premium Deposits) - 45 mths	45M	09.05	9.30

--
Thanks & Regards

Aditya Kachru
Associate Finance Broker
ARN-40736 | NCFM-187929

9818269396 | aditya.kachru@gmail.com | www.investorspleaselisten.blogspot.com

--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

You received this message because you are subscribed to the Google Groups "Investors Please Listen !" group.
To post to this group, send email to investorspleaselisten@googlegroups.com
To unsubscribe from this group, send email to
investorspleaselisten+unsubscribe@googlegroups.com For more options, visit this group at http://groups.google.com/group/investorspleaselisten?hl=en
-~----------~----~----~----~------~----~------~--~---

[Investors Please Listen] Tata Steel Ltd. (Consolidated) 3QFY09 Result Update ; Strong performance, bleak outlook ; HOLD ; Target : Rs143

Tata Steel Ltd.

Strong performance, bleak outlook

HOLD

CMP: Rs159 Target Price: Rs143

Tata Steel reported 3QFY09 cosolidated results, which were significantly ahead of our estimates. Net sales stood at Rs331.9bn (yoy up 4.1%, qoq down 4.9%) driven by better than expected average realization for Corus which stood at USD1,250/t as against our estimates of USD820/t. The higher realizations lead to better operating performance with EBITDA at Rs28.6bn (yoy down 27.5%, qoq down 65.4%) and adjusted PAT at Rs9.5bn (yoy down 26.3%, qoq down 81.2%). Tata Steel reported adjusted FDEPS of Rs10.9. During the quarter, the company reported forex loss of Rs2bn. The cost of production for Corus stood at USD1,168/t as against our estimates of USD1,000/t. Higher realizations during Oct-Nov '08 lead to better average realizations for the quarter. However, 4QFY09 is expected to witness drop in average realization as comapred to 3QFY09. At the same time, Corus is also taking various measures to reduce cost of production. The outlook on Indian operations is optimistic, with management expectations of higher volumes in 4QFY09 to the tune of 1.5mt as compared to 1.1mt in 3QFY09. However, the outlook for Tata Steel UK operations seems to be under some pressure with auto and construction market witnessing a drop of 40-50% in demand. Tata Steel has reported actuarial loss on pension fund of Rs42.5bn which has been adjusted through reserves. Currently, Tata Steel has consolidated net debt of USD11.5bn. At the CMP of Rs159, the stock is trading at 0.7x FY09E book value and at 0.6x FY10E book value. We are upgrading the stock from REDUCE to HOLD with target price of Rs143 (0.5x FY10E book value).
--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

Monday, March 2, 2009

[Investors Please Listen] Reliance Industries | Recommendation: Buy

Merger EPS accretive for RIL

Key points

Reliance Industries Ltd's (RIL) and Reliance Petroleum Ltd's (RPL) board of directors have approved RPL's merger with RIL in an all share deal in the ratio of 1:16 (one RIL share for every 16 shares of RPL). RIL will extinguish the treasury shares created from the merger and issue 6.92 crore shares (4.4% dilution) to the minority shareholders of RPL.

The merger will provide RIL access to RPL's strong free cash flows of around $1.2-1.5 billion each year (expected from the next fiscal year) in the difficult macro environment. This is expected to help RIL to tide over the downturn in the petrochemical cycle and fund its capital expenditure (capex) in the exploration business.

At the operational front, RIL will benefit from crude oil sourcing and placement of the final products in the export market. Moreover, the meger will help RIL balance its overall product slate and better adjustment of capacity ultilisation in the times of downturn.

We believe that the merger will be positive for RIL's earnings per share (EPS) and expect the company's EPS to increase by 3.3% to Rs131.8 per share (as against our existing estimates of Rs127.6 per share) in FY2010. At the current market price, the stock trades at a price/earnings ratio of 9.6x FY2010E consolidated earnings and enterprise value (EV)/earnings before interest, depreciation, tax and amortisation (EBIDTA) of 7.1 x FY2010E. We maintain our Buy recommendation on the stock with the sum-of-the-parts (SoTP) -based price target of Rs1,669 per share.

--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

[Investors Please Listen] Income Tax refunds faster now

The refund banker makes it easier and faster to get the IT refunds due to you

Securing a refund of income tax was a long-drawn process. The completion of assessment takes considerable time. And in case there is any amount of refund due to the assessee, it used to take even longer. In order to reduce the time taken to issue refund orders, the government has initiated the scheme of refund banker. The bank will pay the assessees directly, based on an advice from the Income Tax Department. So the assessee will not have to follow up with the IT Department to check the status of his refund.

According to the Income Tax Act, if any person convinces the assessing officer that the amount of tax paid by him for any assessment year exceeds the amount he should have paid, he will be entitled to a refund of the excess amount. The assessee needs to file an income tax return before the due date of filing returns.

The scheme for sending IT refunds through a bank was inaugurated by the Finance Minister last year. In this scheme, the income tax refunds due to taxpayers will be sent by the State Bank of India directly from their CMP Branch in Mumbai.

The scheme of refund banker is based on the concept of refund bankers for IPOs. In this scheme the assessing officer will process the income tax returns on his computer. If a refund is due to the taxpayer, the data will be picked up automatically and transmitted to the bank. The bank will then send the refund as indicated by the assessing officer either through ECS or by a banker's cheque to the taxpayers address as indicated in the returns of income. An advice will also be sent to all tax-payers regarding the funds deposited in their account by ECS. The bank will despatch refund cheques within three working days of receipt of data.

Where through death, incapacity, insolvency, liquidation or other cause, a person is unable to claim any refund due to him, his legal representative, trustee, guardian or receiver, will be entitled to receive the refund for the benefit of the person or his estate.

Every claim for refund should be made in the prescribed form and verified in the prescribed manner. The claim should be made within one year from the last day of the assessment year. Where, as a result of any order passed in appeal or other proceedings, refund of any amount becomes due to the assessee, the assessing officer will refund the amount to the assessee without his having to make any claim.

With the simplifying of process and expediting refunds, compliance with the tax laws and timely payment of tax liabilities to the IT Department is expected to increase.
--~--~---------~--~----~------------~-------~--~----~
Safe Harbor:
The information contained and provided on this Website provides Investment advice for the education of investors. The posts are an information service only. Recommendations, opinions or suggestions are given with the understanding that readers acting on this information assume all risks involved. We do not assume any responsibility or liability resulting from the use of such information, judgment and opinions for Trading or Investment purposes.

Sunday, March 1, 2009

[Investors Please Listen] Mphasis Limited Result Update ; 'Rock on' Performance speaks for itself ; BUY ; Target : Rs240

Mphasis Limited

'Rock on' Performance speaks for itself

BUY

CMP: Rs168 Target Price: Rs240

Quick Take: Another 'Rock on ' performance

Mphasis reported superlative Q1FY09 results with revenues at Rs 9777 mn (+9.3% QoQ, + 58.1% YoY) and operating profits (EBIT) at Rs 2106 mn (+24.4% QoQ, +246.6% YoY). Operating margins remained steady at Oct month levels at ~26.5%.Net profits at Rs 2100 mn (+14.7% QoQ, +271.1% YoY) beat estimates boosted further by lower tax rates. Net employee addition remained in line at ~1,193 (with apps HC up by ~638 employees sequentially). Our confidence on Mphasis as the best demand story in the mid cap IT services space continues to get reinforced with enviable performance over the past 3 quarters now. Our view gets vindicated with Mphasis being the 2^nd best out performer in the IT services universe over the last 12 months (Mphasis has outperformed broader markets by ~45%, next only to Infy on a LTM basis, refer section below). Although we increase our FY09 earnings estimates by ~25% currently, we will review them shortly post discussions with co management as we believe there is significant upgrade to current estimates. Maintain BUY with a price target of Rs 240.

ITO, Applications continue in top gear mode

Applications business and ITO business continued to drive the growth for Mphasis with revenues in Apps business at Rs 6338 mn (+11.4% QoQ, +59.35 YoY) while ITO contribution stood at Rs 1668 mn (+20% QoQ, +112.8% YoY). Mphasis added ~1193 employees during the quarter with the Apps HC increasing by ~638 QoQ while ITO employee strength increased by ~571 during the quarter. We find the trends in Apps business encouraging as Mphasis showed ramp up in offshore count during the quarter which indicates that offshore transition on significant number of onsite engagements will pick up (note that over the past few quarters Mphasis had been reporting increase in onsite employee count in Apps business with co mgmt indicating that it would transition work offshore going forward)

Operating margins at 26.5%

Mphasis's offshore proportion of revenues is amongst the highest in the industry given the segmental distribution of business (offshore revenues accounted for ~72% of co wide revenues during Q Jan'09) which has helped push Mphasis's operating margins at 26.5% during the quarter helped by ~25%+ currency depreciation and improvement in utilization levels during the last 12 months. We note that Mphasis's operating margins are now higher than most other Tier 1 names apart from Infy and TCS.

Further we highlight that we have not built in similar margins going forward with our FY09E and FY10E operating margins at 22.6% and 21.8% respectively.

Increase FY09E /FY10E earnings by ~25%/7%

Driven by significant beat in Q1FY09 results we are increasing our FY09E and FY10E earnings by ~25% and ~7% respectively to Rs 29.9 and Rs 28 respectively( V/s Rs 24 and Rs 26.2 earlier). Mphasis is currently trading at ~5.7x on FY09E earnings and on 3.6x FY09 EV/EBITDA. We note that although we build in moderation in growth rates for Mphasis as well (like other sector peers) Mphasis, in our view offers the best demand visibility in the sector both on account of EDS's internal work as well as the HP-EDS parentage helping it at external clients. We believe that there is scope for us to increase our FY09 estimates further and would review them shortly post discussions with company shortly.

Our positive view on the stock continues to get reinforced with superlative performance over the past 3 quarters as well as Mphasis's out performance over the last 12 months stands next only to Infosys. (refer section below). We maintain BUY with a price target of Rs 240. Key risks to our call emanate from significant INR appreciation and any unfavorable decision by the parent HP-EDS which could be detrimental to minority shareholders.