Category: Equity Research

Samir Arora the infamous fund manager of Alliance Capital Limited during the Dot Com Boom who is now a Singapore based FII said to CNBC TV 18 that the Indian Real Estate Stocks are overvalued.

He also said that Indian market looked over valued because of the fundamental flaw in how the SENSEX stocks are chosen. Sensex only has the high growth and market value stocks, which always trade at higher PE multiple and hence it looks for an outsider that Indian stock market is over valued. However, if you exclude those stocks, then other Indian stocks are available at the same PE multiple as their peers in China, Russia and Brazil.

Their are rumors again on the street that HDFC is planning to merge itself HDFC Bank Limited. HDFC Bank stock has moved up considerably since the June market crash while HDFC Limited has been a market performer. This may imply that HDFC Bank shareholders are likely to benefit from the merger. HDFC has rejected any such move but in the Diwali Special of Samavat interview with Ramesh Damani, Rakesh Jhunjhunwala and Shankar Sharma, Mr. Jhunjhunwala was of the opinion that HDFC Bank Limited is a great stock to have in one portfolio.

Close on the heels of Reliance ADAG launching retail brokerage and investment advisory services in India under the brand Reliance Money and not RTrade as publicized, Citigroup also made public about their plans to start the same operations in India.

Reliance Money is Reliance ADAG’s brand under which you can trade on BSE, NSE or in Commodities market. Reliance Money is targeting from beginners to advanced level users. Check out their website, RelianceMoney.Com

Citigroup in the USA has retail investment and advisory services under the brand name CitiTrade.

Tags: RTrade, Reliance Capital , Reliance Money , India Online Trading

Tata Consultancy Services, profits for the second quarter ended Sept-30-2006 was at Rs1,019 crores, up 15.4% QoQ and 42.4% YoY. Half yearly profits is at Rs1,728 crores. TCS has beaten the CLSA expectations of Rs911.6 crores profit for Q2.

Revenues for the second quarter was just short of $1 Billion at $978 Million or Rs4,495 crores.

TCS Half Yearly EPS is at 17.66 non annualised.

According to Bull’s Eye Recommendations from ET OCT-16, Emkay Share is bullish on Tech Mahindra Limited and has put a 12 months price target of Rs852 with the company expected to grow at CAGR of 37% in the next 18 months.

ShareKhan has a BUY recommendation on South East Asia Marine Engg with a price target of Rs270. CMP is Rs207.

Merill Lynch has turned bearish on Hindustan Lever Limited and has put a SELL recommendation without any price target. Main concern being the high PE at which HLL is quoting 35XDec-2006 earnings and 30XDec-2007 earnings which is not justified to its projected growth rates.

Crompton Greaves recommended issue of Bonus shares in the proportion of 2 new equity shares for every 5 equity shares, of Rs 2/- each, subject to approval of members in General Meeting and the Regulatory Authorities, as necessary.

The Extra Ordinary General Meeting of the Company, to seek members approval has been convened on November 23, 2006.