Motilal Oswal MOSt Shares Gold ETF - NFO

We take immense pleasure in informing that you can now apply for the following Mutual Fund NFO using our online platform.

NFO Name: “Motilal Oswal MOSt Shares Gold ETF”.

NFO Opening Date: 02^nd March 2012

NFO Closing Date: 16^th March 2012

Type of Scheme	An Open Ended Exchange Traded Fund
Investment Objective	The investment objective of the Scheme is to provide return by investing in Gold Bullion. The performance of the fund will be benchmarked to the Spot Gold Price. However, the performance of scheme may differ from that of the underlying index due to tracking error
Minimum Application Amount	Minimum of ` 10,000/- and in multiples of ` 1/- thereafter during the NFO Period.
Loads	Entry Load : Nil
	Exit Load :  Nil
Fund Manager	Mr. Rajnish Rastogi
Face Value	Rs .10/-
Benchmark	Spot Domestic Gold Price
Plans and Options	The Scheme offers only Growth Option.

Please follow the following steps for applying for the NFO through the online mode.

1. Login to your online trading ID

2. Click on Mutual Fund button

3. Click on the Purchase button for Motilal Oswal Mutual Fund.

4. Select the scheme Motilal Oswal MOSt Shares Gold ETF and click on Go button and follow the simple steps mentioned thereafter.

Please note that during the NFO period, Additional Purchase will not be allowed.

In case of any further queries, please feel free to contact us on Toll Free numbers given below or email us athelpdesk@sbicapsec.com. We shall be glad to serve you.

Contact numbers:  1800-209 9345 (Calling from Private Telecom Operator’s Numbers) 

                                   1800-22-3345 (Calling from MTNL/BSNL Numbers)

[Timings: 8.30 a.m. to 6.30 p.m. (Monday to Friday except Trading holidays) & 9.30 a.m. to 2.30 p.m. (Saturdays)]

Reliance Industries

Reco : Buy    Cmp : 767    Target : 945

RIL’s QTD (Jan-Mar) refining margin remains weak due to decline in product spreads, worsening light-heavy differential and refinery shutdown. We expect Q4FY12 petchem EBIT to decline 5% QoQ on weak polymer spreads. However, higher other income would offset decline in EBIT. We expect 2% QoQ improvement in Q4FY12 PAT based on QTD trends. Our EPS estimates and target price remain unchanged as we had built in lower GRM in Q4FY12 due to refinery shutdown and lower light-heavy differentials.

Refining – GRM weakness continues : Despite a 21% QoQ improvement in Singapore GRM’s to US$ 8.3/bl, RIL’s GRM is expected to remain weak at US$ 7/bl due to lower light-heavy differentials, middle-distillate margins and limited production of higher-margin light-end products. Notably, Dubai crude (used for calculation of Singapore GRM) is selling at a discount to Arab heavy crude used by RIL.

Polymer weakness to impact margins : Petchem blended margin is expected to be down ~5% QoQ as strong gas cracking margin would be offset by weak polymer and PTA margins

E&P – production overhang continues : KG-D6 output would drop to 36 mmscmd in Q4FY12 (42 mmscmd in Q3), resulting in 12% QoQ decline in E&P EBIT.

Valuation reasonable : Polyester capacity ramp up over next 18-24 months would result in earnings CAGR of 12% over FY13-15. Maintain BUY with March ’13 target price of Rs 945, which implies 23% upside from CMP of 767. Additional upside likely from DGH approval for E&P ramp-up and increase in domestic gas prices.

IPO Name: OLYMPIC CARDS LIMITED.

IPO Name: OLYMPIC CARDS LIMITED.

IPO Opening Date:   09-03-2012

IPO Closing Date:    13-03-2012

Price Band: Rs.30/- to Rs.32/-
Bid Lot:      200 shares and multiple thereof

 

The online platform enables you to apply using just the number of shares and the price, with no necessity of filling up a tedious application form.

 

Three simple steps are involved in applying for IPO through the online mode.

 1. Please log into www.sbicapsec.com <http://www.sbicapsec.com/> and use the same login id and password that you use for trading

 2. Click on IPO button on the top of the screen

 3. Choose the IPO to invest in and follow the simple steps outlined therein

In case of any further queries, please feel free to contact us on Toll Free numbers given below or email us at helpdesk@sbicapsec.com. We shall be glad to serve you. 

  

Contact numbers:  1800-209 9345 (Calling from Private Telecom Operator’s Numbers)
                                    1800-22-3345 (Calling from MTNL/BSNL Numbers)

[Timings: 8.30 a.m. to 6.30 p.m. (Monday to Friday except Trading holidays) & 9.30 a.m. to 2.30 p.m. (Saturdays)]

 

REC Tax Free Bond

REC Tax Free Bond


Here is an opportunity to earn TAX FREE returns by investing in REC Tax Free Bonds. The issue details are as follows: REC Tax Free BondIssue Opens on 06/03/2011 & closes on 12/03/2012Face Value Rs. 1000/-Minimum Application Amount Rs. 5000/-Market lot: 5 Bonds and in multiples of 1 Bonds thereafterRate of Interest for Retail -10 Yr / 15 Yr:   8.13% p.a. / 8.32% p.a.

LNT INFRA BOND 2012A Series (Tranche -2)

LNT INFRA BOND 2012A Series (Tranche -2)

LNT Infra Bond issue has been extended till 12th March 2012. Grab the opportunity … and Save Tax... Bond Name: LNT Infrastructure Finance Company Ltd 2012A series (Tranche 2)Bond Opening Date: 10-01-2012Bond Closing Date: 12-03-2012Face Value: Rs. 1000/-Minimum Application Amount: Rs. 5000/-

Bid Lot: 5 bonds and in multiple of 1 bond thereafterTax Benefit: Investment upto Rs.20000/- in LNT Infra Tax Savings bonds u/s 80CCFTenure: 10 yearsInterest Rate: 8.70% p.a. The online platform enables you to apply using just the number of bonds and the price, with no necessity of filling up a tedious application form.

Three simple steps are involved in applying for Infra Bond through the online mode. 1. Please log into www.sbicapsec.com and use the same login id and password that you use for trading 2. Click on Debenture / Bond button on the top of the screen 3. Choose the Debenture to invest in and follow the simple steps outlined therein

In case of any further queries, please feel free to contact us on Toll Free numbers given below or email us at helpdesk@sbicapsec.com. We shall be glad to serve you. Contact numbers: 1800-209 9345 (Calling from Private Telecom Operator’s Numbers)

1800-22-3345 (Calling from MTNL/BSNL Numbers)[Timings: 8.30 a.m. to 6.30 p.m. (Monday to Friday except Trading holidays) & 9.30 a.m. to 2.30 p.m. (Saturdays)]

Birla Sun Life Gold Fund- NFO

NFO Name: “Birla Sun Life Gold Fund”.NFO Opening Date: 01st March 2012NFO Closing Date: 15th March 2012

Type of Scheme An Open ended Fund of Funds Scheme.

Investment Objective The investment objective of the scheme is to provide returns that tracks returns provided by Birla Sun Life Gold ETF (BSL Gold ETF).

Minimum Application Amount Minimum of ` 5,000/- and in multiples of ` 1/- thereafter during the NFOPeriod.

Loads Entry Load : Nil

Exit Load− For units Redeemed / Switched out within 365 days from the date of allotment, an exit load of 2.00% of Applicable NAV shall be payable.− For units Redeemed / Switched out after 365 days from the date of allotment, no exit load shall payable.

Fund Manager Mr.Satyabrata Mohanty

Face ValueRs .10/-

BenchmarkDomestic price of physical gold

Plan and Options Offered:The Scheme offers:• Growth option• Dividend option-• Payout facility • Reinvestment facility

Please follow the following steps for applying for the NFO through the online mode. 1. Login to your online trading ID2. Click on Mutual Fund button3. Click on the Purchase button for Birla Mutual Fund.4. Select the scheme Birla Sun Life Gold Fund and click on Go button and follow the simple steps mentioned thereafter. Please note that during the NFO period, Additional Purchase will not be allowed. In case of any further queries, please feel free to contact us on Toll Free numbers given below or email us at helpdesk@sbicapsec.com. We shall be glad to serve you. Contact numbers: 1800-209 9345 (Calling from Private Telecom Operator’s Numbers) 1800-22-3345 (Calling from MTNL/BSNL Numbers) [Timings: 8.30 a.m. to 6.30 p.m. (Monday to Friday except Trading holidays) & 9.30 a.m. to 2.30 p.m. (Saturdays)]

Investment Idea-Tata Motor DVR

Differential voting rights (DVR) share have different voting rights compared to an ordinary share e.g. Tata Motors' DVR share will have only 10% voting right compared to its ordinary share. These shares have a different dividend rate. e.g. In case of Tata Motors, the dividend for DVR has been fixed at 5% (of the face value) higher than ordinary shares e.g. In FY 11, company gave Rs 4 per share as dividend (200% on Rs 2/- face value) on ordinary shares and Rs 4.10 (205% on Rs 2/- face value) to per DVR holder. Apart from less voting rights & higher dividend there is no difference between intrinsic ownership rights of DVR & ordinary shares.

We recommend to Invest in TATA Motor DVR with the following Investment Rational:

Management with utmost quality of corporate governance: TATA, the promoters of Tata motors, is considered to be one of the finest institutions amongst the corporate sector; hence a steep discount (~44%) to the ordinary shares, is unwarranted.

Promoter stake sale improves liquidity: Initially, illiquidity and lack of institutional interest has seen DVR trade at a wide discount to the original stock. Probably, it does not make sense for the promoters to hold these shares with 1/10th voting rights. Hence, with the DVR holdings gradually changing hands from promoters to domestic and foreign institutional investors, liquidity in the stock is improving, making a good case for investment. The institutional holding has been on a steady rise over past 3 year from ~13% in Q4 FY09 to ~75% Q3 FY12 respectively. Promoter holding on the other hand has come down from ~84% to ~9% (~4.4 cr shares) during the same period, which is currently valued at ~Rs 670 cr.

Higher Dividend yield: The DVR’s carry one-tenth the voting rights of the main shares but pay higher dividends vs. the ordinary shares. Dividend yield is 2.7% vs 1.5% on ordinary shares.

Discounting should be rationalized: Historically DVR shares have been quoting at an average discount of ~30% vs current discount of ~45% and we believe this would be bridged.

Even though there are no benchmarks as to what price DVR’s should trade, globally they are traded at 15%-20% discount as liquidity there is relatively higher. We would suggest investors to buy Tata motor DVR as they are able to get the same intrinsic worth at a significant discount of 45%, which we believe should narrow down to 30%.

We have a hold rating on Tata motors ordinary shares. Adjusted to a 30% discount, DVR should trade at Rs 184 per share which gives a 25% potential upside from current price.

Investment Ideas-Strides Arcolab

Strides Arcolab Ltd (SAL) is well-positioned to capitalise on its strong portfolio of specialty products. We believe specialty segment will deliver superior revenue growth over next 2 years. EBITDA margin will be driven by improved product mix and launch of high margin on co products partially offset by increased spend on R&D and legal expenses to support its FTF portfolio and higher SG&A spend to support its front-end Brazilian business.Net margin will benefit from low interest cost on account of debt repayments over the year.

Q4 performance continues to beat our expectations. Company posted revenue of Rs 687 cr (51% y-o-y) driven primarily by both specialty as well as pharmaceutical segment. Adj. EBITDA stood at Rs 139.9 cr(60.8% y-o-y). Company has reported PAT of Rs 68.4 cr and adjusted PAT of Rs 41.2 cr (652.4% y-o-y).

Specialty Segment:

Revenues from Specialty segment in 4Q CY11 stood Rs. 273 cr (23.8% YoY) with an EBITDA margin of 27.7% (17.3% in 4Q CY10); mainly driven by higher product launches in this quarter.

Company has filed 29 new ANDA and received 25 approvals in CY11 from US FDA. Management plans to commercialise 25 ANDA (approved but not yet launched) in CY12.

Pharmaceutical Segment:

Revenues from this segment increased by63.7% y-o-y to Rs. 408 cr in 4Q CY11 whereas EBITDA margin contracted to 10.6% (21.7% in 4Q CY10).

Pharmaceutical business has primarily benefited from strong sales from its Australasia business coupled with licensing income and high growth from its Global Disease Initiative business. EBITDA margin was impacted primarily on account of sales mix and higher operating charges.

Maintain Buy: We are introducing CY13 estimates in our projections. Based on our CY 13E EBITDA expectation of Rs 606 cr and assigning a multiple of 7x, we arrive at arevised target price of Rs 669(Previous target price was Rs 470) indicating 22% upside.

GDP

India's economy grew 6.1% in the December quarter, the lowest level in more than two years. During the Oct-Dec quarter of previous
fiscal (2010-11), the economy grew by 8.3 %. Lower growth was primarily due to sharp decline in manufacturing sector for a 0.4%
from 7.8% in the corresponding period of 2010-11. The mining and quarrying sector contracted by (3.1%) during the period as
against 6.1 % in the corresponding quarter of the previous fiscal. Agriculture growth declined to 2.7%, down from 11% in the yearago
period. The trade and hotels industries fared better at 9.2%, while construction slowed marginally from 8.7% to 7.2%. The
services sector grew at 8.9% as compared to 7.7% at year-ago. Gross Fixed Capital Formation was also down 1.2% from the same
period last year.
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