Month: October 2007

It took just 4 Trading sessions for the Mumbai Stock Exchange SENSEX 30 to hit a new high of 19,092.

Easing of political worries and improved Index of Industrial Production (IIP) figures for August 2007 boosted the bourses today. India’s industrial output in August 2007 rose 10.7% from a year earlier, higher than upwardly revised annual growth of 7.5% in July 2007 due to mining, manufacturing and electricity production, data released by the government showed on Friday, 12 October 2007.

Emerging markets-dedicated equity funds posted strong inflow for yet another week. For the third consecutive week, emerging markets equity funds recorded inflow in excess of $5 billion at $5.1 billion, in the week ended 10 October 2007. Funds dedicated to emerging Asia had the most inflows in the seven-day period, or $2.13 billion.

Axis Bank’s net profit rose 60.5% to Rs 227.82 crore on 64.1% rise in sales to Rs 2059.37 crore in Q2 September 2007 over Q2 September 2006.

At the current price of Rs 790.90, the scrip trades at a PE multiple of 30.94, based on Q2 September 2007 annualised EPS of Rs 25.56.

The board of the company also proposed to establish a mutual fund, the bank said in a statement to us. Axis Bank is the third largest private bank in India.

L G Balakrishnan & Bros reportedly plans to spin off its forging division into a separate company so that the division can focus more in its core business and can seek independent joint ventures in future. Reports suggest that the company would list the forging unit on the bourses and the company has already set up a panel to fix the share swap ratio for demerger.

At the current price of Rs 26, the scrip trades at a PE multiple of 11.50, based on Q1 June 2007 annualised EPS of Rs 2.26. Face Value of Rs 1.

Jai Corp is a major promoter in developing the 5,250-acre Navi Mumbai Special Economic Zone, apart from Mukesh Ambani led Reliance Industries (RIL). Jai Corp is focusing on developing one of the largest special economic zones in India. Jai Corp is led by Mukesh Ambani’s friend, Anand Jain who has been with Mukesh Ambani for over 20 years now in Reliance Group.

JAI CORP Ltd has informed BSE that the promoters on October 15, 2007 have sold 2,19,00,000 (two crores & nineteen lakhs) equity shares of the Company through the floor of the exchange.

Jai Corp has invested in two multi product special economic zones near Mumbai – Navi Mumbai SEZ (NMSEZ) and Mumbai SEZ (MSEZ). Both the SEZs are being conceived and developed as a futuristic business hub and gateway for trade, commerce, industry, service and tourism. The NMSEZ will be set up as a joint venture with the City and Industrial Development Corporation (CIDCO) of Maharashtra holding 26%, and RIL holding the rest with Jai Corp.

As per recent reports, Jai Corp is planning to raise a venture capital corpus of Rs 40000 crore through its wholly owned subsidiary, Urban Infrastructure Venture Capital. Reports suggest that Jai Corp has already committed a capital of Rs 22,000 crore in 12 cities in India. The major investments would be in multiuse projects and townships (22% each), residential (15%) commercial (14%), industrial township (12%) and hospitality (6%).

HDFC Bank reported net profit of Rs3.68 bn, which was up 44% yoy and 5% higher than our estimate. However, the company exceeded our target largely due to treasury gains.

Core operating performance was 7% below our estimate as the bank reported lower other income and higher expenses. Strong NII growth and moderate growth in fee income drove most of the growth in income. We have tweaked our earnings estimates marginally, so too our target price—to Rs1,300 from Rs1,250. The stock trades at 23X PER and 3.7X PBR FY2009.