23 February 2009

Slumdog Millionaire takes suspense out of Oscars

'Slumdog Millionaire' takes suspense out of Oscars
LOS ANGELES: Academy Awards organisers are going all out to inject more suspense into Hollywood's biggest party Sunday, but this year's show

again suffers from a predictability factor with ``Slumdog Millionire'' expected to take the top prize.

hile there are close races in most key categories, the Oscar for best picture is expected to go to British director Danny Boyle's film which has won the same honor at every other awards ceremony that matters.

The Oscars had their lowest TV ratings ever last year, when the best-picture prize was handed to ``No Country for Old Men,'' which dominated earlier awards shows just as ``Slumdog Millionaire'' has.

A best-picture nomination for ``The Dark Knight'' might have helped, since more viewers tend to tune in when such behemoth films are in the running. Though ``Dark Knight'' supporting-actor nominee Heath Ledger looks like a lock to become only the second performer ever to win an Oscar posthumously, the Batman blockbuster was left out of other top categories.

``Slumdog Millionaire,'' an infectious story of a Mumbai street orphan who finds fame, love and wealth in the face of terrible hardship, faces off for best picture against the romantic fantasy ``The Curious Case of Benjamin Button,'' the Richard Nixon tale ``Frost/Nixon,'' the Harvey Milk gay politician drama ``Milk'' and the Holocaust-themed saga ``The Reader.''

Oscar planners are trying to spice up the show with an air of mystery. Filmmakers Bill Condon and Laurence Mark are overseeing the ceremony, their first time working on the Oscars, which they hope to shake up with new approaches to what has become a staid procession of awards, many of which the average viewer does not care about.

They won't reveal just what they have in mind, other than to say they want to try different methods of presenting the trophies and otherwise reinvigorate the festivities.

``That's what we're hoping to do across the board, just freshen them up and surprise people again with the way these awards are given,'' Condon said.

Organisers dropped their usual onslaught of announcements about A-list celebrities appearing as awards presenters. Their identities are being kept secret, and their presence - at least in some cases - is being kept off the red carpet
.


Audiences can count on a healthy dose of stars among the acting nominees, who include past Oscar winners Meryl Streep, Sean Penn, Angelina Jolie

and Marisa Tomei.
Jolie's romantic partner, Brad Pitt, also is nominated, along with Kate Winslet, Anne Hathaway, Penelope Cruz and Robert Downey Jr.

Downey crept in with a rare comic performance, the sort that usually does not fare well among the heavy dramas favored by Oscar voters. He's nominated as supporting actor for ``Tropic Thunder,'' in which he plays an awards-obsessed actor who buries himself in his roles - his latest as a black soldier in a Vietnam flick, for which Downey's character underwent a radical procedure to darken his skin.

``There is no way I could have read the script and said, `It's Oscar time,''' Downey said. ``I was just hoping I wasn't shot at the premiere.''

While Downey is almost certain to be an also-ran in his category because of the heavy odds on Ledger, there is suspense for lead-acting honors.

Best actress shapes up as a two-woman race between Streep as an old-school nun in ``Doubt'' and Winslet as a former concentration camp guard in ``The Reader.'' It would be the third Oscar for Streep, who has a record 15 acting nominations, while it would be Winslet's first win after five previous losses.

Going head-to-head for best actor are Penn in the title role of ``Milk'' and Mickey Rourke as a former ring star with a last shot at glory in ``The Wrestler.'' Frank Langella also is a strong contender as Nixon in ``Frost/Nixon.''

Rourke joked about his own expectations for the evening. ``I'll probably be sitting out there clapping for Sean Penn,'' Rourke said.

Cruz is the favorite for supporting actress as a volatile artist in ``Vicky Cristina Barcelona,'' though first-time nominee Viola Davis is considered a potential upset winner for ``Doubt,'' in which she plays the mother of a boy who may have been victimised by a priest.

Davis said she grew up more a fan of the Tony Awards on television rather than the Oscars.

``I have to say, I never imagined winning an Oscar,'' Davis said. ``A Tony Award, yes. Not an Oscar. That was almost too big for me. But I imagine it now.''


Other stories in this section
More at ET.

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16 February 2009

Full coverage of Interim Budget 2009

Full coverage of Interim Budget 2009

http://economictimes.indiatimes.com/budget.cms

Full Speech: Interim Budget 2009-2010


With FM's hands tied by convention, it's over to RBI

16 Feb 2009, 1432 hrs IST, TK ARUN, ET Bureau

Propriety, it would appear, has tied Mr Mukherjee's hands. He has followed the tradition of the interim budget merely being a vote on account, without tweaking taxation. The global economic crisis and its impact on the Indian economy had given him an opportunity to de-part from tradition and announce some measures in the budget that would give a fillip to the slowing economy. He has chosen not to.

Budget a sob story: Pranab presents UPA report card


Budget a sob story: Pranab stops at presenting UPA report card

16 Feb 2009, 1244 hrs IST, ECONOMICTIMES.COM

Infrastructure is the only sector that could have a short-lived reason to rejoice post the presentation of the interim budget even as the UPA government decided to maintain status quo on direct and indirect taxes for the next four months in a vote-of account that quadrupled India’s revenue deficit estimates.

Full Speech: Interim Budget 2009-2010

Spending may jump to counter global crunch: Govt

Deficit must go up after 'dream' economic run: Govt

No mandate to tweak taxes; can't keep borrowing: Mukherjee

16 Feb 2009, 1323 hrs IST, PTI

The government has pegged fiscal deficit at 5.5 per cent of Gross Domestic Product for the next financial year, against the revised figure of 6 per cent in the current financial year.

Full Speech: Interim Budget 2009-2010
Rs 1,41,703 cr for defence sector
No tinkering in tax and duty rates
Govt warns deficit must go up after 'dream' run
Budget a sob story: Pranab presents UPA report card

Market falls 3.4% as budget dashes stimulus hopes
Indian equities ended with sharp losses Monday as traders unwinded long positions after the UPA government washed away expectations of a stimulus package in the form of interim budget.
Service tax budgeted at Rs.689 bn for 2009-10Service tax budgeted at Rs.689 bn for 2009-10
Revised estimate for the current fiscal was put at Rs.65,000 crore in the interim budget, presented by Pranab Mukherjee.
Markets:
http://economictimes.indiatimes.com/marketnew/1977021501.cms

Reactions:
http://economictimes.indiatimes.com/budgetlist/4069777.cms


Reactions to interim budget
More >>

Budget Basics
Budget GlossaryBudget Glossary
If financial terms sound to you like the British mumbo-jumbo, here's a ready reckoner for you. Team ET simplifies the Budget terms in a five-part series. We have, however, departed from the way glossaries are presented, in alphabetical order.
More >>

HIGHLIGHTS - Interim budget 2009/10
Govt says spending may jump to counter global crunch

The government projected spending may have to jump later this year to shield the economy from a global slump and stem job losses, fueling fears of a spiralling fiscal deficit that is headed for a 7-year high. Full Article | Full Coverage

Govt keeps tax rates steady
BSE Sensex falls as budget disappoints
High deficit may defer rate cuts - adviser
Govt to raise extra $9 bln in 08/09
Slideshow: Interim Budget 2009/10

BSE Sensex falls 3.4 pct as budget disappoints 6:35pm IST

MUMBAI (Reuters) - BSE Sensex fell 3.4 percent on Monday, its biggest drop in two weeks, after an interim budget failed to provide a much needed impetus to struggling sectors such as construction and autos. Full Article

Govt keeps tax rates steady, sees 7% rise in revenues
India gold braces for 16,000; demand may recoil
Govt to raise extra $9 bln in 08/09; won't tap mkt
More Money News...

FOCUS ON INTERIM BUDGET 2009/10

File photo of a farmer working in a rice field in Nischintapur village, 15 km south of Agartala September 1, 2007. REUTERS/Jayanta Dey/Files
HIGHLIGHTS
File photo of the parliament building in New Delhi February 16, 2006. REUTERS/B Mathur/Files
INSTANT VIEW
Photo
INDUSTRY VIEW

Investors lose Rs one trillion on Budget day

16 Feb 2009, 1949 hrs IST, PTI

Investors lost close to Rs one lakh crore as market gave a thumbs down to the Budget. Gainers: BSE ( A, B ) | NSE | Losers: BSE ( A, B ) | NSE | 52 Wk: High, Low


Your 10 minute resource to the Interim Budget
03:37 - Markets crack; Nifty ends below 2850
•

Budget: No tax cuts | Highlights | Sensex sinks

• India’s Budget disappoints; no tax sops
• Budget: Key points | Full speech | Coverage
• Has UPA let an opportunity pass it by?
• Govt to 'save' Rs 3 lakh on ministers' tours!
• India's GDP clocked 9% in 2008
• Budget: The fiscal policy overview
• Fiscal deficit to rise to 5.5%
• The math of borrowings and debt
• Defence allocation up| Budget at a glance
• $32.4 billion FDI received in 2007-08
• Big schemes get more money



Source: ALL web sources, ET,MC,Rediff etc


















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15 February 2009

BUDGET 2009 Pages From Moneycontrol.com

http://budget.moneycontrol.com/


Economic milestones of UPA government


The Congress-led United Progressive Alliance (UPA) government is expected to recommend dissolution of the present Lok Sabha after the February session. The general election for the 15th Lok Sabha is due before May.

The UPA government claims it had taken action on "almost all 142 items" of significance in the Common Minimum Programme (CMP), its agenda of governance. The CMP's chief focus was on employment, agriculture, health, education, women and children, national security, foreign policy, food, Panchayati Raj, social harmony, minorities, water resources, regional development, among others.

Its most notable achievement includes inflation control and maintaining a tight regulatory environment which prevented domestic institutions from falling prey to global financial woes.

Rising crude and global commodity prices saw inflation bordering around 12%. But a number of policy measures ensured that prices remain under control and the aam aadmi does not suffer.

Dr Shankar Acharya, Honorary Professor, Indian Council for Research on International Economic Relations (ICRIER) and Member of Board of Governors, said a number of subsidies announced last year helped keep prices of food, fertiliser, and petroleum low. "The consequences of that in a normal year might have been rather unpleasant but this hasn’t been a normal year."

The CMP promised an increase in investment for agriculture, which has been in the throes of a crisis. The government promised that immediate steps would be taken to ease the burden of debt and high interest rates on farm loans. In last year's Budget, the government announced a Rs 60,000 crore loan waiver scheme.

The UPA's CMP included a National Employment Guarantee Act to provide at least 100 days of employment for at least one able-bodied person in every rural, urban, poor, and middle-class household. The Act is now functional across India.

It also pledged to raise public spending in education to at least 6% of GDP with at least half this amount being spent on primary and secondary sectors. This was its stance on education. At last count, the UPA government's investment in education stood at 3.5% of GDP.

But despite all these achievements the government failed to deliver on a number of fronts. Primary being its failure to control the rising fiscal deficit. The overall deficit in the current fiscal is expected to surge to 7.5% of the gross domestic product, as against the projected 2.5% in 2008-09.

Since then there has been additional spending of about Rs 1.6 trillion. This increase is attributed to off-budget liabilities – including hefty subsidies on food, fertiliser and fuel – that keep piling on.
The Prime Minister's Economic Advisory Council (EAC) had issued a warning related to serious fiscal risks. It advised the government to urgently raise fuel prices as there was a large backlog of fuel price adjustments to be done.
In addition to the Union government’s extra spending, the state governments have also been given permission to borrow an additional Rs 30,000 crore to fund the stimulus package to combat the slowdown.

The large outgoings for the UPA government’s pet scheme, the National Rural Employment Guarantee Scheme has been a serious cause of concern. Former governor of Reserve Bank of India C Rangarajan had remarked that implementation of the Rural Employment Guarantee programme and the Sixth Pay Commission’s report will take the total deficit to 5%. Similarly, it painted a gloomy scenario on the balance of payments front, pointing out that the current account deficit will balloon to USD 41.5 billion, or 3.2% of GDP, up from 1.5% in fiscal 2007-08. This will be the first time that India’s current account deficit will touch such high levels since the 1991 economic crisis, which triggered off the reforms process.
A number of these steps have resulted in a growth slowdown. The EAC has projected a much slower pace of growth for the current fiscal. The economy is expected to expand by 7.7%, down from last year’s 9.1%, and lower than the earlier projections made by the government and RBI of around 8-8.5%.
However, external factors like global economic deceleration, tightening credit, falling equity markets, and the regressive effects of commodity price-led inflation are also to be blamed for slowdown in economic growth.
Year GDP
2004-05 7.5
2005-06 9.4
2006-07 9.6
2007-08 8.7




There were also a number of areas like health, education, rural employment and agriculture on which it promised but has under delivered.

A report filed a civil society review of CMP implementation (called the People's Verdict) alleged that the promised increase in budgetary allocations to health by 2-3% of GDP has not been met.

The report said spending on health by the Centre is stagnant from 2003-04 onwards. "The present UPA government promised to spend 3% of GDP on health but after four years, the total spending is hovering around 1% of GDP," the document claimed.

Referring to the CMP proposal to spend 6% of GDP on education with at least half the amount being earmarked for primary and secondary sectors, the report said the combined outlay for the education departments of the Centre and states remain at a "meagre 2.84% of GDP" in 2007-08.



Attachments : cmp.pdf



Industry under UPA

Unfinished Agenda

UPA governments four years tenure has certainly symbolised India as an emerging country by way of its reforms but there are still some unfinished agendas which needs to be highlighted in this budget.

See how other industries fared under the UPA

Auto IT Banks
Fertiliser Metal Capital Goods

Economy under UPA

GDP | Inflation | Saving vs Investment | IIP


View macro economic indicators in detail: GDP | Inflation | Saving vs Investment | IIP


India Inc's expectations from the Interim Budget

Did the UPA make you richer or poorer?

HOW well do you know your taxes? Did the UPA government leave your richer or poorer? Take this test to find out.
Read all >

From our archives


UPA’s Economic Face

Key economic portfolios & ministers who headed it

Prime Minister
Dr. Manmohan Singh

Minister of Home Affairs
Shri P. Chidambaram

Minister of External Affairs and Minister of Finance
Shri Pranab Mukherjee

Minister of Railways
Shri Lalu Prasad


Read all >>


Source:Moneycontrol.com


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Stock Analysis and Business Articles from DP blog

Stock Analysis and Business Articles from DP blog



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Indian B-school in global top 15

Indian B-school in global top 15

World's top 15 business schools

February 2, 2009


The much-awaited Global MBA Rankings 2009 published annually by Financial Times, London, is finally out.

While you will find the usual suspects in the top 10 with the London Business School and Wharton School, University of Pennsylvania sharing the numero uno spot, the Shanghai-based China European International Business School (Ceibs) has been ranked eighth, the first time ever any Chinese business school has found a place in the top 10 ever since this survey began a decade ago.

Interestingly, Indian School of Business -- the only Indian management school to figure in this list of 100 -- has ramped up its 2009 position to the 15th spot.

Here's a lowdown on the top 15 business schools as they appear in the Global MBA Rankings 2009.

London Business School: Rank 1
Country: UK

London Business School jumped two places up in the 2009 survey compared to its 3rd rank last year.

Amongst its other achievements London Business School -- sharing the top spot with Wharton School, University of Pennsylvania -- boasts of a community that includes 1,300 plus students each year from 121 countries, 150 plus teaching faculty from more than 30 countries and 27,800 alumni based in more than 120 countries.

Situated in Regent's Park, London, London Business School offers degree programmes like MBA, executive MBA, EMBA-global, Dubai-London executive MBA, Sloan Fellowship MSc, Masters in finance, and PhDs.

Average alumni salary today (in US $): 1,46,565

Wharton School, University of Pennsylvania: Rank 1
Country: USA

Established in 1881 in Philadelphia, Wharton School, University of Pennsylvania, is the world's first collegiate business school has 84,000 plus alumni in 139 countries, 25 plus research centres and initiatives and 11 academic departments.

The university offers executive education programmes in subjects like finance/wealth, management, healthcare, corporate governance, marketing/sales and technology and operations apart from a host of other courses.

Average alumni salary today (in US $): 1,69,784


Harvard Business School: Rank 3
Country: USA

February 2, 2009

Offering management courses since 1908, Harvard Graduate School of Business started with a student population of 33 regular and 47 special students and a 15-member faculty.

It reached one of its famous milestones in 1959 when the school admitted women graduates to the second year MBA programme.

Harvard Business School moved up one position in 2009 to rank 3rd against its 2008 position.

Average alumni salary today (in US $): 1,63,637


Indian School of Business
Country: India

February 2, 2009

A meteoric rise from number 20 is how one can describe Indian School of Business' jump to the 15th position in the Global MBA Rankings 2009 survey.

With over 442 students enrolled for the class of 2009 for its one-year MBA programme the mean and median GMAT score of its student is 714 and 720 respectively.

Established in 2001 by a group of Indian industrialists and academicians ISB is the only Indian management school to make its mark in this global survey.

Average alumni salary today (in US $): 1,48,339


More info:Indian B-school in global top 15


Travel insurance: The good, the bad and the ugly

Why you must invest in gold now

Financial gyaan in tough times

Investing in 2009: What's hot, what's not

Hot jobs for 2009

Information You Can Use
• PhD in Dev studies
• Young Music Entreprnr award
• IIT-Mumbai's E-Summit '09
• JNTata Endwmt Loan S'ships
• USIEF fellowship for teachers
• Corporate training workshop
• Cambridge scholarships
• Business mgmt at IIPM
• Want to study biz mgmt?
• Executive MBA programme
• MBA in Biotechnology
• 2009 FNELP Fellowships
• BITSAT- 2009
• MSc, Computer Applications


Source:Rediff.com

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20 stocks to watch out for: From BT

20 stocks to watch out for


The mood on Dalal Street has changed incredibly over the past year, from greed to denial to panic and now despair. There’s bad news all around, and the slivers of good news are being ignored. So, is this the time to throw in the towel and forget about stock market investing? Hardly. Instead, oversold markets provide a good entry point if you are convinced about the longterm potential of the Indian economy and the cream of Indian corporations.

There are stocks that appear in good shape to survive the slowdown, and be the first to emerge out of the gloom—and the best part is that they’re incredibly cheap when you consider their long-term potential. Business Today speaks to 11 of the brightest minds on Dalal Street and gets them to identify their favourite long-term value picks.

2009 may be a good time to buy fundamentally-sound stocks on the cheap; but investors have to be clear that they won’t reap the returns in 2009, or not even 2010. These stocks are only for long-term investors, with a minimum horizon of three years. Following is the list of 20 stock picks, in alphabetical order.


Aventis Pharma
Focus on lifestyle segment keeps it in good health

For some time now, smart money has been moving into shares of multinational pharmaceuticals companies. After India entered the product patent regime in 2005, the fortunes of MNC pharma companies have changed for the better.

Image
Sector/Business: MNC Pharma

Investment Argument

  • Aggressive in introducing new patented drugs of its parent in many countries

  • Caters to the fast-growing lifestyle diseases segment—diabetes and cardiovascular

  • Zero-debt and a negligible capex will generate cash piles in coming years
They can now introduce new blockbuster drugs of their foreign parents and enjoy the profits. Aventis Pharma is one such well-placed MNC.

It is focussing on fast-growing lifestyle segments like cardiovascular and diabetes in the domestic market. Aventis has a few strong products in this segment like Amaryl (anti-diabetes) with a 4 per cent market share and Cardace (cardiovascular segment) with a 28 per cent market share. Besides, its parent Sanofi-Aventis, France, has a huge pipeline of molecules under development in the lifestyle category.

But what has impressed analysts is the aggressive introduction of its parents’ products in the in the Indian market. Says Rajiv Thakkar, CEO, Parag Parikh Financial Advisory Services (PPFAS): “Aventis’ overseas product introductions in India will expand its domestic business over time.”

Another factor, Thakkar says, that will benefit the stock is its debt-free status and a hefty cash balance. Thakkar, however, has not put a target price on the stock and cautions that the uncertain market may play spoilsport in the short-term. But in the long term, he says, “the stock has the makings of a multi-bagger.”


Axis Bank
Strong business model to offset succession worries
he stock market often reacts sharply to news from the banking sector. Axis Bank’s stock dipped sharply—slipping nearly 18 per cent to Rs 394.50 on January 27, 2009, down from Rs 485 on January 9, 2009. The market, already edgy over slowdown fears, was more worried over the retirement of Axis Bank’s long-time chairman P.J. Nayak, and the issue of a successor. Axis Bank’s advances continue to grow at a decent clip of over 50 per cent at a time when credit expansion has slumped.

The bank is facing a squeeze on margins as lending rates are falling while borrowing costs have yet to come down. Another hitch is possible stake sale of 21.5 per cent in Axis Bank held by administrator of the special undertaking of UTI. Says Vaibhav Agarwal, analyst, Angel Broking: “Axis Bank has been focussing on retail liabilities business before increasing its loan assets. Its fee income too is doing well.”


Bharat Electronics
Armed for growth

ust when large manufacturers are curtailing their activities to save on costs, Bharat Electronics is opening a support centre at Kochi, Kerala, to serve its growing clientele. A Navratna public sector undertaking which gets 80-85 per cent of sales from the armed forces, BEL’s turnover and profit after tax have been rising consistently for four decades now. It is talking to global players like Lockheed Martin, Boeing and EADS to make the most of the government’s “offset” clause, which requires any foreign company bagging an order worth over Rs 300 crore from India’s defence sector to share 30 per cent of it with Indian firms.

It also gains from its links with the Defence Research & Development Organisation. Says V.V.R. Sastry, BEL’s Chairman & Managing Director: “We are interacting with DRDO for developing new products.” Over the last one year, the BEL scrip has slid some 59 per cent, but broking houses still bet big on it. Says Dolat Capital’s Sameer Panke: “In the last five years, while the defence budget has grown at 12 per cent, defence capital expenditure grew at 23 per cent. BEL is a big beneficiary of this increase. The company has strong cash flows and no debts at all.’’


Bharti Airtel
More subscribers, more towers, and now more spectrum

Bharti Airtel typifies the success story of Indian mobile telephony. Its outstanding execution skills have made it the market leader. Over FY2006-08, Bharti cornered 26.5 per cent of the all-India incremental mobile subscriber additions. In the third quarter (fiscal 2009), it reported an increase of 41.5 per cent in gross revenues on a year-on-year basis, and 9 per cent on a sequential basis. During the same period, its mobile subscriber base grew by 55.3 per cent y-o-y and 10.5 per cent q-o-q to 85.7 million. Says Sunil Mittal, CMD, Bharti Airtel: “Bharti’s strategy of extensive roll-out ahead of competition, especially in new villages, has yielded rich dividends.”

The company is also well placed with its telecom infrastructure business, given the need for rapid network expansion by current and new operators. Bharti, with the largest tower portfolio in India through Infratel, is likely to be a key beneficiary. Then there are other reasons why the stock is a good bet. The spectrum allocation imbroglio seems to have been resolved. Says Hitesh Agrawal, Head of Research, Angel Broking: “The spectrum issue was critical for the sustained growth of the telecom sector. Now the medium-term growth requirement of Bharti has been taken care of.”


BHEL
Everybody wants light in dark times—and BHEL has the spark.

Bharat heavy electricals, the largest manufacturer of power plant equipment, is one company that is unlikely to be hit by the economic gloom. It knows the government will spend freely to improve the power sector. And the government does not cancel orders. So, BHEL, which has 64 per cent of the power plant market, has been ramping up capacity.

By December 2007, it had increased capacity from 6,000 MW a year to 10,000 MW, and is now taking it to 20,000 MW by 2011-12. Says Pulkit Bakliwal, analyst at Sharekhan: “The 11th Five-Year Plan has envisaged capacity addition of 78,000 MW.
BHEL has been the major beneficiary of the spending.” Government projects account for around 85 per cent of BHEL’s order book of Rs 1,04,000 crore, giving it high revenue stability. “Even in the present scenario, orders placed by government institutions are unlikely to get cancelled,” says Bakliwal, pointing out that the cash-strapped private players may have to do so. “This gives BHEL a huge comfort level,” Bakliwal adds.

But there are bumps on the road ahead. BHEL could face project delays and a lag before new orders start coming in. The stock, at slightly above Rs 1,320, is trading at a premium. Says Bakliwal: “A strong balance sheet and huge cash pile of about Rs 8,400 crore would help BHEL sail smoothly through the challenging business environment. We recommend a buy with a price target of Rs 1,546 over the next 12 months.”


CRISIL
Ratings become vital during downturns

he global credit crisis has hit the capital-raising plans of Indian companies.The only window open these days is through domestic debt issues or bank borrowings.

Here’s where a debt rating from CRISIL, India’s largest rating agency, helps. Another growth avenue has been created by the Basel-II norms to rate corporate loans given by banks.

Says Jigar Valia of Parag Parikh Financial Advisory Services (PPFAS): “It’s a small component now, but it’s going to be a phenomenally fast-growing business. It’s a perpetual and stable income.” CRISIL’s work for its parent Standard & Poor’s is a cash cow.

Adds Valia: “Even in years of de-growth, this company was trading at a PE multiple of 20 times; but thanks to the financial crisis, the stock is cheap.”

—Clifford Alvares


Engineers India
No fear of input cost hikes

One of Asia’s leading design and engineering companies, Engineers India builds petroleum refineries, industrial projects, offshore structures, metallurgy and power projects. India’s substantial investments in infrastructure have given it an order book of Rs 8,000 crore, to be executed over 3-4 years. It has begun protecting its margins by signing open-book orders—input cost hikes are passed through.

Says Ajay Parmar of Emkay Global Financial Services: “The stock looks quite attractive… there are no worries about the management since the government holds a 91 per cent stake… it has zero debt and high dividend payout. It’s a very safe bet in the current market scenario.”


GMDC
Sitting on a mine of wealth

he share price of Gujarat Mineral Development Corporation was one of the worst affected when Gujarat government asked state-run companies to fork out 30 per cent of their profit before tax for social work. Despite this, the stock is still seen as a good value pick—the bad news has been discounted. Profitability is expected to get a boost from the recent lignite price hike. “Full impact will be seen in the next financial year,” says Sameer Ranade, analyst at PINC Research.

The government may reverse the 30 per cent rule, since minority shareholders at some other companies have mutinied. GMDC’s moves into the power sector will add to valuation.


HCl Technologies
Seeking a global footprint

s India’s fifth-largest IT services exporter, straddling a diverse portfolio of services that ranges from R&D to enterprise, BPO and infrastructure management, HCL Technologies has a de-risked model as it is essentially in high-growth, high-end, low competition areas. It is looking at inorganic growth.

The acquisition of UK-based Axon last year is expected to help it become a major player in SAP implementation, an area from which it expects to get a quarter of its revenues, against 11 per cent now. Says Vineet Nayar, CEO, HCL Technologies, “We have successfully integrated Axon to dominate the SAP space globally.”

Anagram’s V.K. Sharma says: “We feel the worsening global macroeconomic situation and slowdown in IT spending is factored in at this price. The stock trades at almost 8 per cent dividend yield, limiting its downside from these levels.”

—Rishi Joshi

HDFC
Pioneer grows biz in slowdown

At a time when the home loans business is in the dumps, a lower third-quarter profit at India’s largest housingfinance company did not ring any alarm bells. Housing Development Finance Corporation actually boosted net interest income by 18 per cent to Rs 785 crore but was hit by higher running expenses. Analysts did not waver from their “buy” rating.

HDFC’s asset quality has improved further, it has valuable subsidiaries in insurance and asset management and it has been consolidating its business. HDFC’s asset quality has improved in December 2008. Says Gaurav Dua of Sharekhan: “Throughout its history, HDFC has shown a healthy growth.”



Hero Honda
Great traction in falling market


While the current fiscal has been tough for the two-wheeler industry, Hero Honda, the largest motorcycle manufacturer in India, delivered improved growth rates and increased market share. Although its third-quarter sales fell (by 4.5 per cent), it was less impacted than rivals Bajaj Auto (-52.4 per cent) and TVS Motors (-18.5 per cent). Says Pawan Munjal, MD & CEO, Hero Honda: “Our results reflect Hero Honda’s remarkable resilience.” Says Krish Shanbhag of Antique Stock Broking: “We expect Hero Honda to stay ahead on the strength of its brand and new launches.” It is also a debtfree company with surplus cash.

IDFC
Scores on good quality of assets and performance
The portfolio of Infrastructure Development Finance Company includes fullysecured loans and debentures, equity (both private and public), debt capital (where it syndicates financing and earns fees), apart from a host of other layered and mezzanine products. “The great quality of assets and the very sector it operates in makes it a good stock to have for the long term,” says Apoorva Shah of Prabhudas Lilladher. Despite the downturn, the company has managed to do well for itself in the nine months ended December 2008 logging a net profit of Rs 634 crore, up from Rs 593 crore last year’s corresponding period.

Infosys
Some pressure now, but long-term story intact

nfosys Technologies HAS a knack of beating its own earnings guidance, something it may continue doing even in today’s tough business climate. The Bangalore-headquartered information technology major is fighting rivals that are undercutting its prices. But Infosys has in the past demonstrated that it may walk out on a client rather than give up on margins. In any case, it has ushered in the New Year with panache—its third quarter net profits are up 33.3 per cent year-on-year. And it is hoping to end the financial year with a revenue growth of around 30 per cent.

Chief Financial Officer (CFO) V. Balakrishnan admits that the company is passing through tough times. “The environment is challenging as customers are sitting tight on spending. But with clients interested in saving costs, offshoring could increase. The long-term growth story is still intact.”

The scrip may have fallen 48 per cent in the past 12 months, but brokers have a positive long-term view of it. Angel Broking, for instance, has Infy as its sector’s top pick and recommended “accumulate”. Angel’s Harit Shah, however, warns investors that any upside in the near term would be limited. But then he adds: “Infosys will be among the first companies globally to reap the benefits and score a premium over others once the sector recovers from its current spell of slowdown.”


IOC
Safe on three pillars—pipelines, retail & refining

Till a few months ago, anaLysts were sharply negative on IOC’s stock because of the spurt in international petroleum prices. Today, with crude having slumped to below $45 a barrel, things are different.

“On an incremental basis, IOC would be making profits on the marketing business apart from its refining business as well as profits from pipeline. Also… IOC’s profitability is protected because of its income from pipeline business and investments,” says Raamdeo Agrawal, Managing Director, Motilal Oswal Securities.

IOC, along with its subsidiaries, controls 40 per cent of India’s refining capacity, 47 per cent of retail market and 67 per cent of downstream pipeline capacity. Motilal Oswal expects the stock to reach Rs 870 over the next 36 months.


Maharashtra Seamless
No pipe dreams here: just solid demand from an oil hungry world

hink of Maharashtra seamless as among the safest stocks for investors: steady financial performance, a strong balance sheet with no debt and a product (seamless steel pipes) that is in great demand. Says PINC Research Analyst Amol Rao: “MSL has the widest range of seamless products among Indian manufacturers.” The biggest customer is oil & gas sector, followed by engineering and automobile sectors. Seamless steel pipes fetch the firm 75 per cent of its revenues, and electric resistance welded pipes the rest.

The DP Jindal flagship will gain from implementation of the 5th and 6th rounds of the New Exploration Licensing Policy (NELP) for the oil and gas sector and the recent awards under NELP VII. Says Anil Jain, Group CFO, MSL:

“There has been a drop in demand from the private players, public sector players are still placing orders with us,” he says, noting that the decline in steel prices would give it bigger margins. “Liquidity is not going to be an issue for us because of the huge cash reserves,” says Jain.

PINC Research recommends a buy on the stock with a 12-18 month price target of Rs 320.


Maruti Suzuki India
From entry-level to global player, A Star bets big on exports
The year 2008 will go down in history as one of the worst ever for India’s automobile sector. But the situation has started improving now, and analysts believe that companies like Maruti Suzuki India would be the first beneficiaries. Says Surjit Arora of Prabhudas Lilladher: “Although the volume growth is likely to remain subdued for the next 3-4 months, it is expected to recover in 2009-10…”

Shinzo Nakanishi, MD& CEO, Maruti Suzuki India, says: “We have just started exporting our strategic model, the A-Star. In the medium term, exports will play a far more important role… Though there is a general slump in automobile demand globally, we feel products like A-Star will draw greater attention as they are fuel efficient.” Prices of raw material and fuel have eased somewhat although the gains will not show up before the next quarter as Maruti tends to buy raw materials almost six months in advance.

At the current market price of Rs 517.70, the stock looks extremely attractive. Analysts at Prabhudas Lilladher recommend buying the stock post Q3FY09 results and expect it to touch Rs 605 in the next 12-15 months.


Nestle
Taking health & wellness platform to Tier II, III cities

Nestle India, A 61.9 per cent subsidiary of Nestle S.A. of Switzerland,, is India’s third-largest FMCG company after Hindustan Unilever and ITC. It has a strong brand equity that is now helping it make inroads into Tier II and III cities. Nestle’s advantages: low penetration levels for processed foods, rising income levels, urbanisation and changing lifestyle. According to Martial Rolland, CMD, Nestle India: “Our success is based on a sound business model of sustainable performance and capital efficiency that is focussed on the consumer.” Says Edelweiss Securities: “Nestle is increasingly focussing on expanding into Tier II and Tier III cities and leveraging its recent innovations positioned on health and wellness platforms to gain incremental sales.”

The company reported strong revenue growth for its third quarter (July to September). Topline improved by over 20 per cent for the 7th quarter in a row, while bottomline surged by over 40 per cent. Robust earnings growth along with high dividend yield and low gearing makes Nestle a good bet in the long run.


Rallis India
All the right nutrients for growth prepare ground for big leap
When Rallis India reported an 11 per cent rise in net profit and 43 per cent rise in operating profit for the quarter to December 31, it beat analysts forecasts. “It was able to improve the process for manufacturing agrochemicals and also on the sourcing of raw materials,” notes Ajay Parmar, Head of Research, Emkay Global Financial Services. Another factor is that the restructuring undertaken by the Tata Group company in 2002-03 is now showing up in its profitability. Its other attractions: the almost debt-free status (barring a small working capital loan) and its focus on the international market.

New agro-chemical products have been well accepted and its international initiative APOLLO is in the right direction. Rallis plans to achieve revenues of Rs 2,500 crore by March 2012 compared with Rs 671 crore for the year to March 31, 2008. It hopes to achieve operating profit margins of 25 per cent against the current level of 11-12 per cent.

Market cap to sales of 0.6 times compared with 1.5 times for United Phosphorus, the closest competitor, makes Rallis an attractive investment, says Parmar of Emkay.


SBI
No cash crunch, no slowdown. All eyes now on asset quality
For the country’s biggest bank, there’s a problem of plenty. A surge in fixed deposits instead of current & savings accounts (CASA) has raised State Bank of India’s capital costs. CASA deposits added up to 34 per cent in the third quarter of FY 2008-09 as compared with 40 per cent for the second quarter of FY 2008-09. But, unlike other banks, SBI still managed to increase its margins due to better yields form its advances.

The downturn in the economy is not slowing things down at SBI. This year, its growth in advances is expected to be robust, with the third quarter’s 31 per cent growth figure a positive sign. The next year the growth could taper off due to a higher base, but a lower interest rate should help the bank’s other income.

Investments in core banking technology is paying off as the company reported an increase of 34 per cent in fee-based income in the third quarter of 2008-09 over last financial year’s third quarter.

A key area will be managing its asset quality in the coming quarters due to the slowdown in the economy. But growth should also not be a concern for a couple of quarters as it leverages on its size. Says Vishal Goyal, analyst, Edelweiss Capital: “It is fairly attractive as the bank has flexibility in earnings due to bond gains. Next year, operating expenses will be lower. Asset quality may see slippages, but it won’t impact profitability.”



Union Bank Of India
High operating efficiency, good asset quality
Union Bank Of India is among the favoured stocks in the banking sector. Recently, it reported an 84 per cent increase in net profit for the 3rd quarter to Rs 671.7 crore. Edelweiss Securities revised upwards the forecast for the full year net profit by 28 per cent. “We will maintain credit offtake and advance growth of 25 per cent for 2008-09,” says M. V. Nair, CMD, Union Bank of India.

He says the good show is due to NPA recovery, and retail and small and medium enterprise lending. Other income is also growing well, giving it a cushion if credit offtake does not improve. Edelweiss says it is better placed than its peers because of its high operating efficiency, better asset quality and potential to generate average return on equity of 22 per cent in 2008-10 financial years.



More info with Price movements @

20 stocks to watch out for


Source:Business Today




Posted by Srisai & Ganesh & Jaga & myLu at 12:08 AM 1 comments
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14 February 2009

L Mittal, M Ambani among Most Powerful Billionaires

L Mittal, M Ambani among 'Most Powerful Billionaires'



Steel Czar Lakshimi Mittal figures in Forbes list of billionaires

WASHINGTON: India-born steel czar Lakshimi Mittal and head of India's largest company Mukesh Ambani figure among Forbes list of "World's Most Powerful Billionaires" who wield a staggering authority and influence far beyond their riches.

Ranking third on the global list compiled by US business magazine is Lakshimi Mittal who "controls 10 percent of the world's steel production through his company ArcelorMittal" despite his fortune falling $24.5 billion between March and November 2008.

"Born in India but lives in London, where his political clout often incites controversy," it said noting "In 2002, then British Prime Minister Tony Blair reportedly wrote a letter to the Romanian prime minister hinting a sale of the country's steel company to Mittal would facilitate its entrance into the European Union."

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Mukesh Ambani, figures seventh on Forbes list of billionaires

Figuring seventh on the list is Mukesh Ambani, who heads "petrochemicals giant Reliance Industries, Indian's largest company by market cap." Forbes noted he produces oil, gas, petrochemicals and textiles and is personally funding construction of a 27-story home in Mumbai that could cost $2 billion.

Giving the rationale behind the list, Forbes noted last March, there were 1,125 billionaires in the world, each wielding tremendous wealth and weight over the markets and industries in which they operate.

"But few plutocrats possess the money, economic dominance and political clout to touch-or the potential to touch-all of us," it said compiling its list with a formula based on the size and scope of the industries billionaires control, the political influence they exert and the fortunes they hold.

More@
http://economictimes.indiatimes.com/quickiearticleshow/4128467.cms


Source:ET
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