Thursday, January 9News That Matters

Stocks

Federal Bank – Foreign investment limit raised to 74%

Stocks
Federal Bank shares up after RBI allowed Foreign investors to purchase stake in the private bank up to 74 %. RBI said that restrictions placed on the purchase of Federal Bank shares have been withdrawn with immediate effect. The restrictions were removed as government approved increasing foreign investment in Federal Bank from 49 % to 74 % for its paid up equity share capital. Foreign Investment include investments by Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI). The stock of Federal Bank closed at Rs 91.15 on the BSE. It hit a low of Rs 86.75 and a high of Rs 91.75 in the trade today.

Trent shares up on announcing JV with Tesco

Stocks
UK Supermarket -  Tesco said that following receipt of approval from the Indian Foreign Investment Promotion Board, it has entered into a deal with Trent Limited to form 50:50 joint venture with  the operator of the Star Bazaar retail business, Trent Hypermarket Limited (THL). Tata Group firm, Trent Ltd shares rallied after the company formally announced 50:50 joint ventures with British retail giant Tesco to set up the very first foreign supermarket to enter the country's $500 billion pounds retail sector. The world's third-largest retailer, which since 2008 has had a franchise agreement to provide support to Star Bazaar, had made the application to India's FIPB in December. On completion of the transaction THL will operate 12 stores retailing a range of merchandise including food and ...

Merrill Lynch buys Financial Technologies shares worth RS 18 crore

Stocks
Over last 2 days (5th & 6th March 2014), Merill lynch Capital Market Espana has bought shares worth Rs 18 crore in Financial Technologies. As per the bulk deal information with Stock exchange, On Thursday, Merril Lynch acquired 2.64 lakh shares at Rs 370.07 per share for total value of ₹9.77 crore in an open market transaction. On Wednesday, it bought 2.35 lakh shares at Rs 348 per share worth Rs 8 crore in open market. Financial Technologies and Multi Commodity Exchange of India Ltd ( MCX) are under scanner of market regulator SEBI as well as other agencies for various violations. The commodity market regulator has declared Financial Technologies and Multi Commodity Exchange not fit and proper to operate a commodity exchange. The regulator also ordered Financial Technologies to bri...

Reliance MediaWorks’ promoters make buy back / delisting offer

Stocks
Promoters of Reliance MediaWorks  - Reliance Land Private Ltd & Reliance Capital Ltd, have offered to purchase 51 lakh shares (26.70% stake). The buy back worth Rs 251 crore (Rs 48.65 / share) is part of plan to delist the company. Reliance MediaWorks is a part of Anil Ambani-led Reliance Group. Reliance Land holds 54.54 % in the company while Reliance Capital's shareholding is 18.76 %. Together, they hold 73.30 % in the company. The offer would be open from March 20 to March 26 2014. After reaching a minimum of 90%  of the equity capital and fulfilment of other conditions stipulated under the delisting regulations, the company will seek to voluntarily delist the equity shares from BSE and NSE. Shares of the company rose nearly 1% to Rs 56.55 per share

Rakesh Jhunjhunwala invests Rs 11 crore in HT media

Stocks
On 28-Feb-2014, Rakesh Jhunjhunwala's company Rare Enterprises bought 15 lakh shares in HT media for approx Rs 11 crore. He bought the shares at average price of Rs 71.25 .  Following this , the shares of HT media spiked 8% and ended at Rs 77.50 During Dec 2013 quarter, HT Media had reported a Consolidated net sales of Rs 573 crore & consolidated net profit of Rs 67.02 crore Market cap - Rs 1817 crore The 52-week high of the share was Rs 123.70 and the 52-week low was Rs 69.50. The company's trailing 12-month (TTM) EPS was at Rs 0.94 per share as per the quarter ended December 2013.  The stock's price-to-earnings (P/E) ratio was 82.45. See Portfolio Holding of Rakesh JhunJhunwala

Stock Analysis – Speciality Restaurants

Stocks
Business Speciality Restaurants is a fine dining chain which has presence in 25 cities through its popular brands Mainland China, Oh! Calcutta, Global Grill, Sigree Global Grill, Mezzuna and Hoppipola. Over the next 2 years, it plans to add 25-30 outlets to its existing chain of 90 restaurants and 16 confectionaries. Financials The company's flagship brand Mainland China contributes 58 %  to its total revenues. The company's net revenue during the period grew to Rs 214.8 crore while its operating profit margin was stable at 21.9 per cent. compounded annual growth rate (CAGR) of 13.6 per cent in the past three years despite a fall in domestic discretionary spending. The company has managed a large part of this expansion from the proceeds of its initial public offering ( IPO) in 2012...

Top 10 midcap stocks to bet in 2014 : Dolat Capital

Stocks
Here is a list of Dolat Capital's top ten stocks to beat volatility in markets for a period of 12 months:  The brokerage firm do believe that the economy and cyclicals may have seen the worst of troughs in this cycle, however any meaningful recovery in our opinion is only likely during FY16. What we are more curious to estimate is the pace of growth on the recovery mode, and how much can it justify the current valuations. And that will be significantly influenced by the political situation post May elections.  The key indices remain at the similar levels having corrected post the state election results rally. At 13xFY15, the brokerage firm believe we are in the perfect centre and could swing either ways 15-20 per cent next few months.   Company Target  Price Market Price...

Top Stocks which are interest proof

Stocks
In the current High Interest rate environment, the interest expenses will be higher for high debt companies and therefore lower profits. There is inverse correlation between interest rates and corporate profits. So, investors can focus on companies which have very low / nil debt. The list of companies with low debt equity ratios and the returns these have generated over the past decade is as under: ITC Infosys NMDC Oracle Financial Colgate Container Corp Cummins CRISIL Bharat Electro Hindustan Copper Engineers India Marico Dr Reddys Wipro Torrent Pharma Mphasis Thermax Tata Communication Feel free to comment below, if you hold other good stocks.....

10 stocks for longer term (5-10 years)

Stocks
Following 10 stocks are recommended by Analysts which can deliver good returns for next 5-10 years       Recommendations by SMC Investments Reliance Industries Ltd Mahindra & Mahindra Ltd Tata Consultancy Services Ltd Cairn India Ltd Larsen and Toubro Ltd Recommendations by Bonanza Portfolio Ltd ITC Sun Pharma HCL Technologies Havells India Lupin   Source: ET 11-Feb-2014

14 Large Cap Stock Recommendations – Prabhudas Lilladher

Stocks
Prabhudas Lilladher has identified largap ideas that can give sharp returns over a period of one year. The Brokerage is 'overweight' on IT and healthcare, and 'neutral' on consumer staples and 'underweight' on banks. 1) ITC (Target price Rs 381) 2) Infosys (Target price Rs 4,550) 3) HDFC Bank (Target price Rs 760) 4) Wipro (Target price Rs 700) 5) ICICI Bank (Target price Rs 1,150) 6) Larsen & Toubro (Target price Rs 1,157) 7) NMDC (Target price Rs 163) 8) Hindustan Zinc (Target price Rs 163) 9) Axis Bank (Target price Rs 1,400) 10) Dr Reddy's Laboratories (Target price Rs 2,697) 11) Hero MotoCorp (Target price Rs 2,251) 12) Zee Entertainment (Target price Rs 330) 13) Motherson Sumi (Target price Rs 234) 14) Aurobindo Pharma (Target price Rs 640)