THE MARKET : WHY IT EXISTS?

When a company is growing, the biggest hurdle is often raising enough money to expand.
Owners generally have two options to overcome this. They can either borrow the money from a
bank or venture capitalist, or sell part of the business to investors and use the money to fund
growth. Taking out a loan is common, and very useful – to a point. Banks will not always lend
money to companies, and over-eager managers may try to borrow too much initially, wrecking
the balance sheet. Factors such as these often provoke owners of small businesses to issue stock.
In exchange for giving up a tiny fraction of control, they are given cash to expand the business.
In addition to money that doesn’t have to be paid back, “going public” [as its called when a
company sells stock in itself for the first time], gives the business managers and owners a new
tool: instead of paying cash for an acquisition, they can use their own stock.

RISKS INVOLVED IN STOCK MARKET:-

It must be emphasized that there are no guarantees when it comes to individual stocks. Some
companies pay out dividends, but many others do not. And there is no obligation to pay out
dividends even for those firms that have traditionally given them. Without dividends, an investor
can make money on a stock only through its appreciation in the open market. On the downside,
any stock may go bankrupt, in which case your investment is worth nothing. 

Although risk might sound all negative, there is also a bright side. Taking on greater risk
demands a greater return on your investment. This is the reason why stocks have historically
outperformed other investments such as bonds or savings accounts. Over the long term, an
investment in stocks has historically had an average return of around 10-12%. 

To make money in the stock market, one must assume high risks.
ANALYSIS TOOLS:-

There are two types of the analysis used by institutional and individual traders. Both
fundamental and technical analysis serve the same purpose to help to define possible future
stock trend, yet, at the same time they are completely different in the way they analyze stocks.
Both fundamental and technical analyses are important and depending on the trading style one or
another could be applied.

FUNDAMENTAL ANALYSIS:-

Fundamental analysis is the process of looking at a business at the basic or fundamental financial
level. This type of analysis examines key ratios of a business to determine its financial health and
gives you an idea of the value its stock. Many investors use fundamental analysis alone or in
combination with other tools to evaluate stocks for investment purposes. The goal is to determine
the current worth and, more importantly, how the market values the stock.

TECHNICAL ANALYSIS:-

Technical analysis looks at past performance of an analyzed stock in order to find logical
patterns that could be applied to the current situation on the market and reveal possible future
stock trend. As a rule this type of the analysis is based on the analysis of the volume and price
charts, data, developing various technical indicators which. In the age of the computerization
many of the traders are choosing this type of the analysis mainly because of the availability and
fast results.

By comparing technical and fundamental analysis there is no straight answer which one of them
is better. However taking into account different traders we may say that:

 For intraday traders: if a trader intends to make 1-5 trades a day, most likely, they do
not care about fundamental analysis at all. It does not matter to intraday traders what is
going to happen to the company over the month, is it on the edge of filing bankruptcy or
it is strong and growing. All they are interesting in is how volatile and how liquid stock is
 and where the price of the stock is going to be in 10-30 minutes. These traders rely solely
on technical analysis.

  For Short-Term Traders: The same as intraday traders this type of trading does not
assume holding position (own stocks) for a prolonged period of time. 1-2 trades a week
and even 2-3 trades a month is still a small timeframe to be bothered by complex
fundamental analysis.

  For Mid-Term Traders: By going into 2-3 trades a year a traders may start to be
interesting in some elements of the fundamental analysis. By holding a stock for more
than 6 month in your portfolio you suppose to know at least a little bit about the
company. You still may use technical analysis, yet some company research could be
recommended for this type of traders.

  For Long-term Traders: If you intend to hold the stock of the company in your
portfolio for a several years it becomes essential to consult fundamental analysis. Those
who trade indexes still may use some elements of technical analysis, yet, when it comes
to stocks you have to be sure it is not broken when you are willing to sell it and has at
least the same value so you do not loose.

INVESTMENT RATIONALE

Each investment alternative has its own strengths and weaknesses. Some options seek to achieve
superior returns (like equity), but with corresponding higher risk. Other provide safety (like PPF)
but at the expense of liquidity and growth. Other options such as FDs offer safety and liquidity,
but at the cost of return. Mutual funds seek to combine the advantages of investing in arch of
these alternatives while dispensing with the shortcomings.

Indian stock market is semi-efficient by nature and, is considered as one of the most respected
stock markets, where information is quickly and widely disseminated, thereby allowing each
security’s price to adjust rapidly in an unbiased manner to new information so that, it reflects the
nearest investment value. And mainly after the introduction of electronic trading system, the
information flow has become much faster. But sometimes, in developing countries like India,
sentiments play major role in price movements, or say, fluctuations, where investors find it
difficult to predict the future with certainty. Some of the events affect economy as a whole, while
some events are sector specific. Even in one particular sector, some companies or major market
player are more sensitive to the event. So, the new investors taking exposure in the market
should be well aware about the maximum potential loss, i.e. Value at risk.

LIMITATIONS OF THE STUDY:-

 Equity research is done by highly experienced professionals. Therefore it requires

a very deep and thorough knowledge of the subject.

 This research directly influences the decisions of the investors thereby making it
extremely important to be very precise and careful. The results found should be
very accurate which is not an easy task.

 Every analyst has his own methods of forecasting therefore the results can vary.

 The analyst has to take all factors into consideration and arrive at a probabilistic
estimate of the company’s stock price. Analyst will continuously upgrade or down
grade his estimates depending on evolving conditions of Economy, Industry and
Company plans.
 MAIN TEXT

ECONOMIC ANALYSIS
INTRODUCTION

The Economy analysis is important to understand the macro-parameters for investment in a

particular country. The set of indictors that define the economy includes the Lagging, Leading
and the incident indicators. These define the overall health of economy under consideration.

The Global financial turmoil, was casted a big impact on the world. Entire world economy got
seriously affected by the crisis. Hence forth the world economy can be by and large segregated in
the 3 phases, primarily pre-Lehman debacle, the financial crisis and the latest being the recovery.
Some economists prefer to call this the ‘V’ shaped recovery. Whether the new phase can be
termed as Yellow weeds or green shoots remain to be seen.

WORLD ECONOMIC STATISTICS AT A GLANCE

World GDP (PPP): $65 trillion
GDP Growth Rate: 5.2%
Growth Rate of Industrial Production: 5%
GDP By Sector: Services- 64% Industry- 32% Agriculture- 4%
GDP Per Capita (PPP): $9,774
Population: 6.65 billion
The Poor (Income below $2 per day): 3.25 billion (approximately 50%)
Millionaires: 9 million (approximately 0.15%)
Labor Force: 3.13 billion
Exports: $13.87 trillion
Imports: $13.81 trillion
Inflation Rate - Developed Countries: 1% - 4%
Inflation Rate - Developing Countries: 5% - 20%
Unemployment - Developed Countries: 4% - 12%
Unemployment & Underemployment - Developing Countries: 20% - 40%

INDIA ECONOMIC ANALYSIS

India economic analysis provides various inputs on economic condition of this south-east Asian
country. It can be done both at a microeconomic as well as a macroeconomic level. India
economic analysis could also be described as being an explanation of various economic
phenomena going on in this country. 

Recent macroeconomic developments in India:

In April 2009, industrial sector in India had recorded a growth of 7 percent. However, this figure
is lesser than 11 percent development, which had been achieved in April 2008. Much of this
critical condition could be attributed to an increase in prices of oil. Measures that have been
taken by Reserve Bank of India, like upward revision of repo rate and CRR, have also
contributed to decrease in industrial production. 

Manufacturing and electric sector have suffered as well in recent times. Their growth rates have
come down too. For manufacturing sector it was 7.5 percent and for electricity sector, rate of
development stood at 1.4 percent in April 2008. This rate is significantly low when compared to
statistics of April 2007, when rates of development for manufacturing and electricity were 12.4
percent and 8.7 percent respectively. 

In case of manufacturing sector much of this slump could be attributed to increase in input costs
like expenses of oil, raw materials, rates of interest and prices of goods and services. Mining
sector has been comparatively better off as it has managed to grow at a rate of 8 percent in April
2009 compared to 2.6 percent that was achieved in April 2008. 

In core infrastructural industries, there has been deceleration as well, but it is still better off
compared to non infrastructural industries in India. Growth in April 2008 has been around 3.6
percent, which is less than 5.9 percent achieved in April 2007. Industries like crude oil
production, electricity and petroleum refinery have been performing below expectations but coal,
finished steel and cement have performed better than April 2007. 

SENSEX : AN INDICATOR OF THE INDIAN ECONOMY

Sensex is the buzzword today that governs the activities of the investors in India. With
metamorphosis witnessed in all sectors and the country turning into a fast developing economy
there is no dearth of investors. Even overseas investors are attracted towards sensex India and it
has not been a decade that the stock market gained great momentum. The BSE index rose to such
an escalating level that thousands of shares were being traded every minute and more investors
being ready to invest. But the sudden downslide in the year 2008 left all in panic – reminding
one of the ‘snake & ladder’ game. Many turned bankrupt, a number of companies closed down,
and financial chaos were the order of the day for over six months at a stretch. The downslide
affected the BSE sensex, lowering the stock prices and investors were in a dilemma whether to
take the risk or not. But now market conditions have changed for the better; the BSE index, over
the last few months, has been displaying a rising figure. At present, the sensex index closed at
16844.20 up from the below-10,000 figure.
The global recession period is about to get over & the severely affected banks & equities are
slowly reverting back to their previous shape. All the investors trading in BSE stocks will feel
glad to know that Bombay Stock Exchange (BSE) is also recovering from the massive effect that
economic slowdown has left on it. BSE is one of the Asia’s oldest stock exchanges operating the
stocks of a lot of companies from different sectors.

India is expanding at a rapid rate after China, but the upward trend is one of the steadiest
compared to the other foreign markets. India being diverse in many sectors will see more upside
due to the strong demand in information technology. The other sectors for future growth in India
are energy, oil, and commodities. The Sensex has had its way will continue to grow. India’s
economy is booming and the high return will reflect on its stock market.

The increase in sensex means lot of people who have invested and also persons invested in the
mutual funds will be benefited .so the earning per capita is increasing , companies will grow so
their branches will too so employment the foreign investors will also invest and we will be
benefited.SENSEX is one of the major parameter by which growth of the indian companies and
thus its impact on economy can be found out. Increase in Sensex means that companies are
improving, thus unemployment will be decreased and also Income level of the people will also
be leveled up. Thus it will definitely have a positive impact on the Economy which will have a
positive flow or the positive impact on the country

IMPACT OF UNION BUDGET 2010-11 ON SENSEX

The benchmark Sensex saluted Union Budget 2010 unveiled by Finance Minister Pranab
Mukherjee and rallied over 400 points during the same day. Experts say it was a effect of short
covering and positive reaction to budget.
The Nifty closed above the 4900 mark but the sell-off and profit booking in ITC on hike in
excise, BHEL, Tata Power, TCS, Infosys and ABB erased more than 50% gains from day's high.
Even heavyweights came off their day's high on profit booking at higher levels. It seemed that
the markets discouted the budget.
Pranab Mukherjee in his second budget announced some positives like gradual reduction in
fiscal deficit, cut in surcharge, more allocation for infrastructure development, increase in FY11
divestment target, increase in personal tax slab to Rs 8 lakh etc, which all these pushed
the sensex above. However, there were some negatives like hike in excise duties etc.

 Closing
Index  Chg (%) 
Value

AUTO 7,170.99 4.74

METAL 16,401.52 2.58
BANKEX  9,828.68 2.26
PHARMA 4,912.98 1.55
MIDCAP 6,397.82 1.47
REALTY 3,236.69 1.26
OIL&GAS 9,596.24 1.08
SMALLCAP  8,067.40 1.08
CAP GOODs 13,474.86 1.06
POWER 2,961.56 0.26
TECk 3,179.21 0.03
IT 5,173.99 -0.29
FMCG 2,662.05 -2.25

Positive global cues also helped the markets.

European markets were trading 1% higher and US index futures were marginally in green. Asian
markets also recovered in late trade; Hang Seng was up 1% and Kospi up 0.45%. Nikkei, Straits
Times and Taiwan were marginally in green while Shanghai fell 0.28%.
However, the markets shrugged off less-than-expected gross domestic product (GDP) data. The
Q3 GDP came in at 6% as against 7.9% in the previous quarter. For the period of nine-month
ended December 2009, GDP growth stood at 6.7% versus 7.1% on year-on-year basis. This was
despite negative growth in agriculture.

CONSTRUCTION INDUSTRY:-

India is on the verge of witnessing a sustained investment in infrastructure build up. With
construction component accounting for 42% of the total investment in infrastructure, the
construction industry has been witness to a strong growth wave powered by large spends in
housing, road, ports, water supply and airports development. The construction sector has grown
at a CAGR of 16.5% during the last seven years and now accounts for 6.9% of India’s GDP
compared to 5.7% in FY00. The Planning Commission of India has proposed an investment of
around US$ 500 bn in the Eleventh five-year plan (2007-2012), which is nearly 2.3 times more
than the previous five-year plan. 

 From a policy perspective, there has been a growing consensus that

a private-public partnership is required to remove difficulties
concerning the development of infrastructure in the country.
During the tenth five-year plan (2002-07), the share of private
players in the total investment was 18%, which has increased to
30% during the eleventh five-year plan. The balance will be borne
by the public sector.

  The real estate industry comprising of construction and

development of properties has grown from family based entities
with focus on single products and having one market presence into
corporate entities with multi-city presence having differentiated
products. The industry has witnessed considerable shift from
traditional financing methods and limited debt support to an era of
 structured finance, private equity and public offering.

 The construction sector is a major employment driver, being the

second largest employer in the country, next only to agriculture.
This is because of the chain of backward and forward linkages that
the sector has with other sectors of the economy. About 250
ancillary industries such as cement, steel, brick, timber and
building material are dependent on the construction industry. A
unit increase in expenditure in this sector has a multiplier effect
and the capacity to generate income as high as five times.

KEY POINTS:-

Supply Past 2-3 years have seen a substantial increase in the

number of contractors and builders, especially in the
housing and road construction segment.

Demand Demand exceeds supply by a large margin. Demand

for quality infrastructure construction is mainly
emanating from the housing, transportation and urban
development segments.

Barriers to entry Low for road and housing construction. However,

high working capital requirements can create growth
problems for companies with weak financial muscle.

Bargaining Low. Due to the rapid increase in the number of

power of contractors and construction service providers,
suppliers margins have been stagnant despite strong growth in
 volumes.

Bargaining Low. The country still lacks adequate infrastructure

power of facilities and citizens have to pay for using public
customers services.

Competition Very high across segments like road construction,

housing and urban infrastructure development.
Relatively less in airport and port development.

SHARE TO GDP:-
The Indian construction industry has been playing a vital role in overall
economic development, as its contribution to GDP at current market
prices has gone up from 5.3% in FY02 to around 7.8% during FY08. In
fact, during FY02-FY08, the sector grew at CAGR of 20.3%.

CONCLUSION:

Real estate investments account for about 60% of the total construction
investments. Demand-supply gap for residential housing, favourable
demographics, rising affordability levels, availability of financing
options as well as fiscal benefits available on availing of home loan are
 the key drivers supporting the demand for residential construction. In
addition to this, demand for office space from IT/BPO segment is
expected to continue due to emergence of India as a preferred
outsourcing destination. Also, boom in organized retail is expected to
result in huge demand for real estate construction. According to industry
estimates, the Indian real estate industry is expected to grow at a
compounded rate of 33% between FY05 to FY10, mainly driven by the
residential segment.

TELECOM INDUSTRY:-

The Indian telecommunications industry is one of the fastest growing in the world and India is
projected to become the second largest telecom market globally by 2010.India added 113.26
million new customers in 2008, the largest globally. The country’s cellular base witnessed close
to 50 per cent growth in 2008, with an average 9.5 million customers added every month.

According to the Telecom Regulatory Authority of India (TRAI), approximately 14.25 million
telephone connections, including wireline and wireless, were added during July 2009, taking the
total number of telecom subscriber base at the end of July 2009 to 479.07 million from 464.82
million a month before.

According to Business Monitor International, India is currently adding 8-10 million mobile
subscribers every month. It is estimated that by mid 2012, around half the country's population
will own a mobile phone. This would translate into 612 million mobile subscribers, accounting
for a tele-density of around 51 per cent by 2012. It is projected that the industry will generate
revenues worth US$ 43 billion in 20010-11.

Moreover, according to a study conducted by Nokia, the communications sector is expected to

emerge as the single largest component of the country’s GDP with 15.4 per cent by 2014. The
Indian equipment market is estimated at US$ 24 billion in FY09.
GROWTH
According to a Frost & Sullivan industry analyst, by 2012, fixed line revenues are expected to
touch US$ 12.2 billion while mobile revenues will reach US$ 39.8 billion in India.
India has become the second country in the world to have more than 100 million CDMA-based
(code division multiple access) mobile phone subscribers after the US, which has 157 million
CDMA users.

RIVALRY AMONG EXISTING COMPETITORS

Competition in the Indian telecommunications industry is concentrated in the mobile segment,

where there are up to six operators in some circles. Despite intense competition, the rapid growth
of the market has allowed these players to expand their subscriber bases even as they lose market
share.
There are three types of players in telecom services:

 State owned companies (BSNL and MTNL).

 Private Indian owned companies (Reliance Infocomm, Tata Teleservices.
 Foreign invested companies (Vodafone, Bharti Tele-Ventures, Idea Cellular, Spice
Communications).

Key companies are:

BSNL:
 Incumbent service provider and world’s 7th largest telecommunication company, state
owned.
 Operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services.
 Operates in 21 circles(except Delhi and Mumbai)
 MTNL:
 State owned
 Operates in two circles Delhi and Mumbai
 Operates basic, cellular (GSM and CDMA) mobile, Internet and long distance services

BHARTI AIRTEL:

 Leads the mobile segment in the country

 Operates in 17 circles.
RELIANCE COMMUNICATIONS:

 Offers mobile and fixed line telephony including broadband, national and international
long distance services, data services and a wide range of value added services and
applications, new entrant in GSM.
 Pan India presence

TATA TELESERVICES:

 Offers mobile and fixed line telephony including broadband, national and international
long distance services, data services and a wide range of value added services and
applications, new entrant in GSM.
 Pan India presence.

IDEA CELLULAR:

 Offers mobile, national and international long distance services, data services and a wide
range of value added services and applications, uses GSM technology.
 Pan India presence
Competition has intensified with the entry of new cellular players in select circles. Reducing
tariffs will hurt the new entrants as they will be unable to recover their high capital investments.
The Wireless Industry crossed 391million subscribers mark at the end of the financial year 2008-
09. The total subscriber base of 391.76 million comprise of 297.26 (75.88%) million GSM and
94.50 (24.12%) million of CDMA subscribers. The market share of various service providers is
depicted in the figure:

Figure 1: Market Share of Wireless Operators (in %) as on 31st March 2009

It is clear that no service provider has a major share and there is intense rivalry among the
existing players in the market. Thus competitive rivalry is due to:

 Rush of new entrants

 Swift technology obsolescence due to new product innovations
 Margin pressures due to fierce competition
 High exit barriers due to specialized instruments making it a risky business.

Thus companies have to change their strategies, need to provide good services and penetrate the
market with low prices to survive in the cut throat competition.

CONCLUSION:-

Telecom stocks have undergone major value erosion on the bourses after the tariff war started in
late September last year. The scrip of sector leader Bharti Airtel has fallen by 36% since October
1, 2009. The market capitalization of Reliance Communications (RCOM), the second-largest ,
has nearly halved, while that of Idea Cellular has fallen by 23% during the same period.

Further, the customer loyalty has been reduced due to the entry of large numbers of players into
the market. Govt. policies & stiff competition has made the growth of this sector very slow.
Though there is still hope that the sectors will revive its full potential, it is better to invest in
other sectors if it is not a long term investment.

INTERPRETATION OF VARIOUS PARAMETERS IMPORTANT IN

ANALYSING A STOCK

EPS:-
The portion of a company's profit allocated to each outstanding share of common stock. Earnings
per share serves as an indicator of a company's profitability.

Calculated as:

Earnings per share is generally considered to be the single most important variable in

determining a share's price. It is also a major component used to calculate the price-to-earnings
valuation ratio. An important aspect of EPS that's often ignored is the capital that is required to
generate the earnings (net income) in the calculation. Investors also need to be aware of earnings
manipulation that will affect the quality of the earnings number. It is important not to rely on any
one financial measure, but to use it in conjunction with statement analysis and other measures.

P/E RATIO:-
A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

In general, a high P/E suggests that investors are expecting higher earnings growth in the future
compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story
by itself. It's usually more useful to compare the P/E ratios of one company to other companies
in the same industry, to the market in general or against the company's own historical P/E. It
would not be useful for investors using the P/E ratio as a basis for their investment to compare
the P/E of a technology company (high P/E) to a utility company (low P/E) as each industry has
much different growth prospects. 
 
The P/E is sometimes referred to as the "multiple", because it shows how much investors are
willing to pay per rupee of earnings. If a company were currently trading at a multiple (P/E) of
20, the interpretation is that an investor is willing to pay rs.20 for rs.1 of  current earnings.

BETA:-

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the

market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that
calculates the expected return of an asset based on its beta and expected market returns..
Beta is calculated using regression analysis, and one can think of beta as the tendency of a
security's returns to respond to swings in the market. A beta of 1 indicates that the security's
price will move with the market. A beta of less than 1 means that the security will be less volatile
than the market. A beta of greater than 1 indicates that the security's price will be more volatile
than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the
market. 

DEBT/EQUITY RATIO:-
A measure of a company's financial leverage calculated by dividing its total
liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is
using to finance its assets.

 A high debt/equity ratio generally means that a company has been aggressive in financing its
growth with debt. This can result in volatile earnings as a result of the additional interest
expense. 

If a lot of debt is used to finance increased operations (high debt to equity), the company could
potentially generate more earnings than it would have without this outside financing. If this were
to increase earnings by a greater amount than the debt cost (interest), then the shareholders
benefit as more earnings are being spread among the same amount of shareholders. However, the
cost of this debt financing may outweigh the return that the company generates on the debt
through investment and business activities and become too much for the company to handle.
This can lead to bankruptcy, which would leave shareholders with nothing.

The debt/equity ratio also depends on the industry in which the company operates. For example,
capital-intensive industries such as auto manufacturing tend to have a debt/equity ratio above 2,
while personal computer companies have a debt/equity of under 0.5.

DIVIDEND PAYOUT RATIO:-

The percentage of earnings paid to shareholders in dividends.

Calculated as:

The payout ratio provides an idea of how well earnings support the dividend payments. More
mature companies tend to have a higher payout ratio.

MARKET CAPITALIZATION:-

The total market value of all of a company's outstanding shares. Market capitalization is

calculated by multiplying a company's shares outstanding by the current market price of one
share. The investment community uses this figure to determining a company's size, as opposed to
sales or total asset figures. Company size is a basic determinant of asset allocation and risk-
return parameters for stocks and stock mutual funds. The term should not be confused with a
company's "capitalization," which is a financial statement term that refers to the sum of a
company's shareholders' equity plus long-term debt.

ANALYSIS OF Bharti Airtel :-

EPS 24.82
 P/E RATIO 11.70
BETA 0.93
DEBT/EQUITY RATIO 0.28
MARKET CAP 1102612.86

DIVIDEND PAYOUT 5.73

RATIO
SALES 340142.90
CURRENT PRICE 285.20
52 WEEK HIGH/LOW 495/230

PRICE CHART OF BHARTI AIRTEL:-

Bharti Airtel has resistance at Rs 320-330. Bharti Airtel fell a lot, so it has gone through a normal
correction on the upside. There is a significant band of resistance at Rs 320-330 area and Bharti
Airtel could not cross it. That was only to be expected. It is now resuming its downtrend. Bharti
will see much lower levels and the telecom sector is going to see a lot of mayhem. It has not
even started. So one would be better off switching from  Bharti to maybe a banking or even
technology or metals. Telecom is not a good idea.
Basically it has bought growth by going into Africa; it was going into a phase where the growth
was not likely to happen. So yes, it has got the new subscriber addition but at the end of the  day,
it is going to take about two-three years for it to make money for it to be EPS accretive and that
also if they are able to bring down the operating cost substantially. So one should wait before
entering into the stock and let all the ups and downs happen and maybe six months time is a
good time to re-look at the story and enter into it.

COMPANY DETAILS:-

Price Target: Rs.350

Market Cap: 113367.05

P/E : 11.69

52 week high/low: 495/229.50

BSE code : 532454

SHAREHOLDING PATTERN:-

PROMOTER’S HOLDING:

INDIAN PROMOTERS – 45.30%

FOREIGN PROMOTERS – 22.11%

NON PROMOTER’S HOLDING:

INSTITUTIONAL INVESTORS
BANKS FIN.INST. AND INSURANCE – 4.44%

FII’S – 19.58%

PUBLIC INVESTORS – 1.22%

OTHER INVESTORS – 3.90%

indian promoters
foreign promoters
FII's
public investors
other investors

FINANCIAL PERFORMANCE :-

PARTICULARS FY 2007-08 FY 2008-09 COMMENTS

CUSTOMERS 64,268,049 96,649,487 Growth of 50% Y-o-Y

GROSS REVENUE 270,122mn 373,521mn Growth of 38% Y-o-Y
EBITDA 114,018mn 152,858mn Growth of 34% Y-o-Y
PAT 63,954mn 78,590mn Growth of 23% Y-o-Y
GROSS ASSETS 423,224mn 586,616mn Increase by Rs 163,392mn
CAPITAL EXPENDITURE 218,043mn 166,945mn Decline of 25% Y-o-Y
CAPITAL PRODUCTIVITY 63.82% 63.67%

LIQUIDITY:-
As on march 31,2009, the company has cash and bank balance of Rs. 27,660mn and marketable
securities of Rs. 23,422 mn. The company actively manages its short term liquidity to generate
optimum returns via investments made in debt and money market instruments including bank
fixed deposits & certificates of deposits, liquid and income debt fund schemes, fixed maturity
plans and other similar instruments.

DIVIDEND:-

Company paid a final dividend of Rs. 2 per equity share of Rs.10 each(20% of face value) for the
FY 2008-09. The total dividend payout will amount to Rs 4442 mn, including Rs. 645mn as tax
on dividend.

COMPANY BACKGROUND:-

Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular
service provider in India, with more than 121 million subscribers as of January 2010. With this,
Bharti is now the world's third-largest, single-country mobile operator and sixth-largest
integrated telecom operator. It also offers fixed line services and broadband services. It offers its
TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company
also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It
also acts as a carrier for national and international long distance communication services. The
company has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore.

INDUSTRY ANALYSIS:-
 Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover
Bharti Airtel 289.05 109,759.66 34,014.29 7,743.84 35,357.62
Reliance Comm 163.05 33,653.96 13,610.58 2,352.93 82,593.93
Idea Cellular 62.30 19,315.91 9,916.45 1,008.21 18,873.79
Tata Comm 294.70 8,398.95 3,749.43 515.95 9,125.92
MTNL 74.00 4,662.00 4,576.53 214.83 12,059.38
TataTeleservice 24.15 4,581.73 2,041.88 -159.60 2,743.96
Spice Comm 57.20 3,946.37 1,585.34 -1,015.22 1,875.94
Tulip Telecom 919.95 2,667.86 1,608.28 249.58 1,802.84
Nu Tek India 33.25 114.77 159.09 14.48 171.93
Goldstone Infra 27.75 100.12 45.61 6.27 110.56

The Indian telecom sector has seen a phenomenal growth and currently has close to 430mn
telecom customers. The market surpassed the USA to become the second largest market in the
world after china.

Notwithstanding this, the telecom penetration is only 37% with a wireless penetration of 33.7%
and broadband penetration of 0.54%,thereby offering a good growth potential.

Bharti airtel ,with over 96mn customers as on march 31,2009, is the largest integrated telecom
operator in India with investment of Rs 23,489mn, revenues of Rs373,521mn and Rs 78,590mn
in net profits. It is among the top 5 companies in terms of market capitalization in India.

INVESTMENT POSITIVES:-

The Indian growth story continues and the revival of the economy is on its way. There are no
doubts that telecom sector will lead the economic revival and Bharti airtel will be at the
forefront. Bharti airtel is the first private mobile GSM operator to have an all india footprint and
operations in Sri Lanka.

STRONG SUBSCRIBER GROWTH CONTINUES:-

The company continues to focus on subscriber additions in order to increase its market
penetration. The company is currently adding about 46 subscribers every minute. This takes the
company’s total subscriber base to just under 90 million which is about 25% of the country’s
wireless users. The opportunity to increase this base is immense as the country’s tele density
currently is just over 30% as compared to developed countries where teledensity ranges around
80%. This approach by telecom companies to gain market share will boost top line growth as
well as profitability and is also the major growth driver in the industry.

FORAY INTO ELECTRONIC MEDIA BROADCASTING:-

The company provides DSL and telephone services in 15 circles spanning over 95 cities with
growing focus on new media and entertainment solutions such as DTH and IPTV. As on march
31,2009, the company had 2,726,239 customers , a growth of 19.3% , of which 39.3% were
subscribing to broadband/internet services. The revenue from the telemedia services were
Rs.33,426mn, a growth of 17% over the revenues in the previous financial year.

STRATEGIC ALLIANCES TO IMPROVE QUALITY:-

The company is constantly looking forward at providing value added services in order to retain
its subscribers. The company has entered into contracts and strategic alliances with several
market leaders in their respective areas of concentration. The company has a strategic alliance
with Infosys in order to manage its recently launched DTH service. The company has also an
alliance with IBN in order to service its operations in Sri Lanka.

OUTLOOK AND VALUATION:-

Considering the above mentioned investment rationale, the company can be rated an
outperformer. The stock currently trades at a P/E of 11.69.

GLOBAL EXPANSION:-

The telecom sector continues to play an important part in India’s growth story. Bharti airtel with
100 million customers is eminently placed to leverage the benefits of the strong customer trust
that they have been able to build. The addition of new services like DTH and IPTV will ensure
airtel retains and further strengthens its brand leadership.

As a first step towards pursuing the international aspirations, airtel commenced operations in Sri
Lanka. The run away success of the launch has justified the conviction that the airtel business
model can be effectively and profitably replicated in other countries.

After keeping into account the increasing demand and shortage of power in the country we can
say that power sector is one of the most demanding sectors in India. To meet the demand of
power in the country, government has taken many steps for its expansion.
A short peek at India’s past performances indicates that during the last three five year plans
(8th, 9th and 10th), we have barely managed to achieve half of the capacity addition that was
planned. As we enter the third year of the 11th five year plan, we have already seen slippages on
the planned approx. 79 GW capacity addition.
Some of the bottlenecks in this sector are:
 Heavy dependency on raw material/equipment suppliers
 And challenges around logistics and work front availability

POWER SECTOR

To contain the peaking shortages and to meet the incremental demand, CEA has targeted a
capacity addition of 1, 00,000 MW in the XIIth Five Year Plan, a growth of 27%. We believe the
plan targets would continue to increase going forward. The shelf of the projects planned for the
XIIth Five Year Plan stands strong at 1,38,000 MW.
Private sector utilities are expected to account for around 50% of the capacity additions in the
XIIth Five Year Plan. With private sector utilities’ better execution capabilities, a better visibility
exists for equipment companies, as more projects would take off.
Power plants based on supercritical technology are expected to dominate the capacity addition
plans in the XIIth and the XIIIth Five Year Plan. Hence, in our view, companies with
technological tie-ups and faster indigenisation in manufacturing over the next two to three years
would have an edge.

Generation
India has the fifth largest generation capacity in the world with an installed capacity of 152 GW
as on 30 September 2009, which is about 4 percent of global power generation. The top four
countries, viz., US, Japan, China and Russia together consume about 49 percent of the total
power generated globally. The average per capita consumption of electricity in India is estimated
to be 704 kWh during 2008-09. However, this is fairly low when compared to that of some of the
developed and emerging nations such US (~15,000 kWh) and China (~1,800 kWh). The world
average stands at 2,300 kWh2. The Indian government has set ambitious goals in the 11th plan
for power sector owing to which the power sector is poised for significant expansion. In order to
provide availability of over 1000 units of per capita electricity by year 2012, it has been
estimated that need-based capacity addition of more than 100,000 MW would be required. This
has resulted in massive addition plans being proposed in the sub-sectors of Generation
Transmission and Distribution.

Transmission

The current installed transmission capacity is only 13 percent of the total installed generation
capacity3. With focus on increasing generation capacity over the next 8-10 years, the
corresponding investments in the transmission sector is also expected to augment. The Ministry
of Power plans to establish an integrated National Power Grid in the country by 2012 with close
to 200,000 MW generation capacities and 37,700 MW of inter-regional power transfer capacity.
Considering that the current inter-regional power transfer capacity of 20,750 MW4, this is indeed
an ambitious objective for the country.

Distribution
While some progress has been made at reducing the Transmission and Distribution (T&D)
losses, these still
remain substantially higher than the global benchmarks, at approximately 33 percent. In order to
address some of the issues in this segment, reforms have been undertaken through unbundling
the State Electricity Boards into separate Generation, Transmission and Distribution units and
privatization of power distribution has been initiated either through the outright privatization or
the franchisee route; results of these initiatives have been somewhat mixed. While there has been
a slow and gradual improvement in metering, billing and collection efficiency, the current loss
levels still pose a significant challenge for distribution companies going forward.
Indian Power Industry - Current Scenario and Opportunities Ahead

KEY PLAYERS IN THE POWER SECTOR

Till now, power sector is dominated by Central and State Utilities.
Overall capacity - 152 GW
Centre’s share 49.8 GW
State’s share 76.6 GW
Private Sector’s share 25.2 GW

This dominance of the prevailing sector also prevails in power distribution and transmission.

Regulations are evolving and paving the way for greater private sector participation

Being a highly regulated sector, not surprisingly policies and regulations are playing a pivotal
role in the development of this sector. Over the years, the government has realized the
importance of the private sector participation. The Electricity Act, 2003 was a turning point in
the reforms process which removed the need for license for generation projects, encouraged
competition through international competitive bidding, identified transmission as a separate
activity and invited a wider public and private sector participation among other things.
Some of the other major reforms that have been implemented over the years include: unbundling
of SEBs, tax benefits, Accelerated Power Development and Reform Program (APDRP) for
distribution, permission for trading of power, etc7. Furthermore, the National Tariff Policy of
2006 encouraged private investment in the transmission sector through competitive bidding. In
addition, the allocation of captive coal blocks to private companies was one of the many
noteworthy reforms, increasing the fuel security for the end use project.
Aided by the ambitious plan to add around 78.7 GW of additional generation capacity in the 11th
plan by the year 2012, according to CRISIL Research estimates, about INR 7,50,000 crore is
likely to be invested in the power sector over the next five years by 2013-14. Of this, INR
4,80,000 crore is expected to be invested in the power generation space. Nearly half of the
investments in the power generation space is likely to be made by the private sector8. Along with
generation this has opened up opportunities in the transmission sector as well.In order to
encourage private sectors in transmission line business, Government of India issued guidelines
for private sector participation.
These developments have given rise to new opportunities for the private sector especially in the
power generation space. As a result, there have been a plethora of new projects announced by the
private sector companies many of whom are negligible or have no prior experience in this sector.
This has given birth to the adage of Plans vs. Plants by clearly distinguishing between growth
and value utilities.The new entrants in this sector face a number of challenges relating to the
project execution, fuel security, power equipment capacities, infrastructure constraints, etc.

ANALYSIS OF COMPANIES IN POWER

SECTOR
RELIANCE POWER
OVERVIEW Reliance Power Limited (RPower) is part of the Reliance Anil
Dhirubhai Ambani Group. RPower is engaged in the development,
construction and operation of power generation projects with a
combined planned capacity of 33,480 megawatts. The Company is
developing 3,960 megawatts Tilaiya Ultra Mega Power Project
located in the State of Jharkhand. RPower is developing 16 large and
medium sized power projects with a combined planned installed
capacity of 33,480 megawatts. The Companies subsidiaries include
Sasan Power Limited, Rosa Power Supply Company Limited,
Maharashtra Energy Generation Limited, Vidarbha Industries Power
Limited, Tato Hydro Power Private Limited and Siyom Hydro Power
Private Limited. In March 2008, the Company acquired Indonesian
coal mine
FINANCIAL The Anil Dhirubhai Ambani Group’s Reliance Power today reported a 26.45
per cent rise in its third quarter consolidated net profit at Rs 133.64 crore,
SYNOPSIS
against Rs 105.68 crore in the year-ago period... Net income also reflects
the absence of bonus issue expenses and an increase in gross &
operating profit margin. Reliance Power Limited is established to
develop, construct and operate power projects domestically and
internationally.
Key No key developments in 2010.
Developments Working on the past projects
 Sasan UMPP conferred the “ The Indian Deal of the Year
Award”
 Reliance Power’s 1200 MW Rosa project commences power
generation.
52 Week Rs 210/125.25
High/Low
Average Volume 4006765
Beta 1.03
P/E Ratio 59.27
EPS 2.64
Current Ratio 0.56
Quick Ratio 0.56
Book Value

Long Term Debt

Equity Ratio .096
As on
08,09&2010
Return on Equity 1.79
Return on Assets 1.62

Return on 1.68
Investments

TATA POWER
Overview Tata Power Company Limited is an integrated private power utility
 company. During the fiscal year ended March 31, 2009 (fiscal 2009), the
Company generated 14,807 million units of power from all of its power
plants. Its Trombay Thermal Power Station generated 9,845 million units
of power in fiscal 2009. Its three hydro power plants, Bhira, Bhivpuri and
Khopoli, generated 1,151 million units during fiscal 2009. Its Jojobera
Thermal Power Station generated 3,009 million units. The Belgaum
Independent Power Plant generated 447 million units during fiscal 2009.
During fiscal 2009, the Company commissioned additional wind power
capacity of 36 megawatts at Gadag (Karnataka), 29.6 megawatts at
Samana (Gujarat) and 15 megawatts at Sadawaghapur (Maharashtra).

Financial Tata Power has announced its third quarter results of FY10. It has reported
Synopsis consolidated net profit of Rs 92.57 crore. Consolidated net sales stood at
Rs 4,313.04 crore.

The company's trailing 12-month (TTM) EPS was at Rs 47.85 per share.
The stock's price-to-earnings (P/E) ratio stands at 26.44.
 
The book value of the company is Rs 365.08 per share. Price-to-book
value of the company was at 3.47.
 
The dividend yield of the company was 0.91%.
Key May 3, 2010
Developments
Balrampur Chini Mills Ltd said on Monday it has signed a pact with Tata
Power Co Ltd to sell power at approximately Rs 6.50 per unit.

The power will be sold from the firm's 18 mega-watt Haidergarh unit
currently and also from its Manakpur power plant, which will be
operational from the second week of June, it said in a statement to the
exchange.

Tata Power Company Limited Plans To Sell Some Non Core Assets-DJ
Tuesday, 30 Mar 2010 

Dow Jones reported that Tata Power Company Limited is looking to sell
some of its non core assets to raise about INR100 billion in the next 6-12
months. The capital raised from asset sales will be used to help achieve a
power generation capacity target of 25,000 megawatt by financial year
2017. 

Tata Power Company Limited To Supply 500 MW To Reliance In April-

Hindustan Times
Friday, 26 Mar 2010 

Hindustan Times reported that Reliance Infrastructure will get 500 MW

power from Tata Power Company Limited at least for a month. Tata
Power Company (TPC) that told the state government that its decision to
stop the supply of 500 MW of power to Reliance Infrastructure from April
1, 2010 was legal has now agreed to continue supply for another month. 
 

Tata Power Company Ltd Signs MOU With Korea East West Power
Company Ltd To Explore And Execute Operations And Maintenance
Opportunities In Asia, Middle East And Africa

Tuesday, 16 Feb 2010  

Tata Power Company Ltd announced that the Company and Korea East
West Power Company Ltd (EWP), one of the Generation Utilities of
Korea, have signed a Memorandum of Understanding (M0U) to identify
and execute O&M opportunities relating to third party Generation Assets
 in Asia, Middle East and Africa. Under this MoU, Tata Power and EWP
have initiated a technical cooperation in the field of Operation and
Maintenance of the Generation Assets. The technical cooperation shall
cover exchange of information, best practices and exchange of personnel
relating to the O&M of Generation Assets. 
52 Week Rs 1517.70/831.35/-
High/Low
Average Volume 262450
Beta 1.07
P/E Ratio 27.58
EPS 47.83
Current Ratio 1.64
Quick Ratio 1.77

Book Value 364.90

Long Term Debt 1.51
Equity Ratio
Return on Equity 14.28
Return on Assets 4.77
Return on 6.20
Investments
POWER GRID CORP
Overview Power Grid Corporation of India Limited is engaged in the transmission of
bulk power across different states of India. The Company’s business
segments are Transmission, Consultancy, Telecom and ULDC/RLDC. The
Company has around 71,500 circuit kilometers of transmission network and
120 numbers of extra high-voltage alternating current (EHVAC) and high-
voltage direct current (HVDC) sub-stations with a total transformation
capacity of 79,500 megavolt ampere (MVA). The Company has diversified
into telecom business to utilize spare telecommunication capacity of its
unified load dispatch center (ULDC) schemes, using its country-wide
transmission infrastructure. As a part of this, it has installed over 20,000
kilometers of telecom network, and connectivity has been provided to all
metros, cities and towns. It also provides consultancy services to the power
sector, including design, engineering, procurement, inspection, project
 management and construction supervision
Financial For the nine months ended 2009, Power Grid Corporation of India Limited's
Synopsis revenues increased 15% to RS53.96B. Net income increased 39% to
RS14.94B. Revenues reflect increased income from Transmission,
Consultancy and higher income from Telecom business. Net income also
reflects a decrease in FERV as adjustment in borrowing costs, a fall in FERV
above domestic borrowing costs and a decrease in rebate to customers.
Key
Power Grid Corporation of India Limited Raises INR10.45 Billion Via
Developments
Bonds-DJ
Tuesday, 30 Mar 2010 
Dow Jones reported that Power Grid Corporation of India Limited has
raised INR10.45 billion via bonds. Power Grid Corporation of India Limited
sold 15-year bonds, strippable from the fourth year and paying a coupon of
8.84%. Other details such as the end use of the funds weren't immediately
available. 

52 Week Rs 130/93.50
High/Low
Average 2131790
Volume
Beta 0.74
P/E Ratio 21.45
EPS 5.01
Current Ratio 1.00
of last 3 years
Quick Ratio 0.96
of last 3 years

Book Value 32.16

Long Term 1.9465
Debt Equity
Ratio
As on
08,09&2010
Return on 12.02
Equity
Return on 3.46
Assets
Return on 4.01
Investments

NTPC
Overview NTPC Limited (NTPC) is an India-based company engaged in the
generation thermal power. The Company’s principal business is
generation and sale of bulk power. Other business includes providing
consultancy, project management and supervision, oil and gas exploration
and, coal mining. During the fiscal year ended March 31, 2009 (fiscal
2009), 66% of total power generation was from coal stations. During
fiscal 2009, the power stations of the Company generated 206.939 billion
units of electricity. It has an installed coal-based capacity of 23,895
megawatts comprising 79 units with average fleet age of 18 years. The
Company has acquired 44.6% stake in Transformers and Electricals
Kerala Ltd. (TELK) from Government of Kerala on June 19, 2009.

Financial India's largest power generation company NTPC has declared its numbers
Synopsis for the financial year 2009-10. It has reported net profit of around Rs
8,600 crore.
 Consolidated capex stood at Rs 29,104 crore and standalone capex at Rs
22,350 crore.

NTPC said it has added 1,560 MW capacity in FY10 and would add 4,150
MW capacity in FY11. Its FY10 total load factor stood at 90.18%.

Key 7th April,2010

Developments NTPC Limited Plans 1,000 MW Power Plant In Bangladesh With
Bangladesh Government-DJ
7TH April,2010

NTPC Limited And NPCIL JV To Plans 700 Mw Nuclear Plant In

Madhya Pradesh or Haryana-Business Standard
NTPC Limited Aims To Raise INR1.95 Billion Via Bonds-DJ
Tuesday, 30 Mar 2010 
Dow Jones reported that NTPC Limited aims to raise INR1.95 billion by
selling bonds. The NTPC Limited plans to sell 10-year bonds paying a
coupon of 8.73%. Other details such as the end use of the funds weren't
immediately available. 

NTPC Limited Announces Setting Up Of Project Monitoring Centre

Friday, 26 Mar 2010 
NTPC Limited announced that a Project Monitoring Centre (PMC) has
been setup by the Company. This PMC has facility of video-wall for
facilitating video conferencing with all Projects and Web based Project
Monitoring with respect to schedule by leveraging state of art IT tool. All
the ongoing projects and all future identified new projects are connected
to the PMC and Web based monitoring has been rolled for all the ongoing
projects. 

NTPC Limited In Talks With Indonesia's Sugico To Buy Coal Mine-DJ

Friday, 26 Mar 2010 
DOW JONES reported that NTPC Limited is in talks with Indonesia's
Sugico Group over the possible acquisition of a coal mine with 1.8 billion
tons of reserves. 

NTPC Limited Declares Interim Dividend

Monday, 15 Mar 2010 
NTPC Limited announced that its Board of Directors has decided to pay
interim dividend at the rate of 30% (INR3.00 per share) on the face value
of paid-up equity shares of INR10 each for the financial year 2009-2010.   

NTPC Limited's $2 Billion Share Sale To Open February 3-Reuters

Thursday, 14 Jan 2010 
Reuters reported that NTPC Limited said its follow on public offer of
412.27 million shares, or 5% in the Company, will open on February 3
and close on February 5. At current prices, the offer is estimated to raise
about $2 billion. The shares sale is part of the government's divestment
plan. ICICI Securities, Citigroup Global Markets, J.P. Morgan India and
Kotak Mahindra Capital Company are the book running lead managers to
the issue. 

India Eyes $2.4 Billion From NTPC Limited Stake Sale-Reuters

Tuesday, 15 Dec 2009 
Reuters reported that according to The Economic Times report, India
aims to raise INR110 billion ($2.4 billion) from a stake sale in state utility
NTPC Limited. 

Power Finance Corporation Limited, NTPC Ltd, Grid Corporation of

 India Ltd And Rural Electrification Corporation Ltd. Announces Joint
Venture Company
Thursday, 19 Nov 2009 
Power Finance Corporation Limited announced a Joint Venture
Agreement has been signed between Power Finance Corporation Ltd.,
NTPC Ltd., Power Grid Corporation of India Ltd. and Rural
Electrification Corporation Ltd. on November 19, 2009 for incorporating
a Joint Venture Company with equal equity contribution (i.e. 25% each)
from all the 4 CPSUs. The Company shall be incorporated to carry out
and promote the business of energy efficiency, energy conservation and
climate change. 

NTPC Limited Signs Memorandum of Understanding With

Government of Madhya Pradesh
Tuesday, 10 Nov 2009 
NTPC Limited announced that a memorandum of understanding has been
signed on November 09, 2009 at New Delhi amongst Government of
Madhya Pradesh, NTPC Ltd and Madhya Pradesh Power Trading
Company Ltd for setting up of 4x660 MW coal based thermal power
project in Narsingpur District, Madhya Pradesh by NTPC as a regional
project of NTPC. 

52 Week Rs241.35/182/-
High/Low
Average Volume 1991488

Beta 0.68
P/E Ratio 19.90

EPS 10.70
Current Ratio 2.70
Quick Ratio 2.42

Book Value .7155

Long Term Debt 6.7
Equity Ratio
Return on Equity 14.68

Return on Assets 7.91

Return on 8.81
Investments

NEYVELI LIGNITE
Overview Neyveli Lignite Corporation Limited is an India-based, open-cast
mechanized lignite mine. The Company mines 24 million tons of lignite
annually and generates power with installed capacity of 2490 megawatts of
power. Neyveli Lignite Corporation Limited has three lignite mines: Mine I,
Mine II and Mine IA. During the fiscal year ended March 31, 2009 (fiscal
2009), the lignite production was 213.07 LT. In fiscal 2009, the total power
generation of the Company was 15767.98 MU (gross). The Company is
generating power in its Thermal Power Station I, Thermal Power Station-II
and in Thermal Power Station I Expansion. Neyveli Lignite Corporation
Limited also provides consultancy services in mining and power sectors.

Financial For the nine months ended 31st December 2009 Neyveli Lignite Corporation
Synopsis Limited's revenues increased 13% to RS34.69B. Net income increased 29%
to RS9.02B. Revenues reflect an increase in income from power generation
and higher income from lignite mining segments. Net income also reflects a
decrease in depreciation expanse and lower prior period items. Neyveli
Lignite Corporation Limited is engaged in exploration of lignite deposits.
Key
Neyveli Lignite Corporation Limited Declares Interim Dividend
Developments
Thursday, 4 Mar 2010 
Neyveli Lignite Corporation Limited announced that the Board of Directors
of the Company at its meeting held on March 04, 2010, have declared an
interim dividend at 10%, INR1 per equity share for the financial year 2009 -
2010. 

Neyveli Lignite Corporation Limited Looking For Joint Venture Partners

orCoal

Monday, 8 Feb 2010 

Dow Jones reported that Neyveli Lignite Corporation Limited is looking for
joint venture partners to identify and acquire coal blocks in Asia and Africa,
and also plans to bid for ultra mega power projects under tariff-based
competitive bidding, livemint.com reported, citing Newswire18.  Nov
9,2009::Neyveli Lignite Corporation Limited Announces Setting Up Of 50
MW Wind Farm Power Project in Tamil Nadu

52 Week Rs 177.30/83
High/Low
Beta 1.49
P/E Ratio 24.08
EPS 6.11
Current Ratio 2.66
Quick Ratio 2.47

Book Value 56.44

Long Term .44
Debt Equity
Ratio
Return on 8.87
Equity
Return on 5.2
Assets
Return on 6.11
Investments

BHEL
Overview Bharat Heavy Electricals Limited (BHEL) is an engineering and
manufacturing company in the energy-related and infrastructure sector. The
Company caters to sectors, including to the power generation and
transmission, industry, transportation, renewable energy and defense. It has
a network of 14 manufacturing divisions, four power sector regional
centers, eight service centers and 15 regional offices, one subsidiary co.
joint ventures and a number of project sites spread all over India. BHEL
manufactures a range of products and systems for thermal, nuclear, gas and
hydro-based utility power plants. BHEL supplies steam turbines,
generators, boilers and matching auxiliaries up to 800 megawatts ratings,
including supercritical sets of 660/800 megawatts. BHEL also supplies
circulating fluidised bed combustion (CFBC) boilers for thermal plants.
BHEL manufactures 220/235/500/540 megawatts electric (MWe) Nuclear
turbine-generator sets. In May 2008, it acquired Bharat Heavy Plate &
Vessels.
Financial BHEL Q4 net profit up 39.96% at Rs 1,886 cr (prov)
Synopsis Index heavyweight BHEL has announced its fourth quarter FY10
provisional numbers. Its net profit rose 39.96% to Rs 1,886 crore
versus Rs 1,347.5 crore, on year-on-year basis (YoY).

Net sales increased 39.74% to Rs 14,729 crore from Rs 10,540.1

crore. CNBC-TV18 had expected revenues Rs 12,700-13,488
crore and net profit at Rs 1,720-2,096 crore.
 BHEL has received orders worth Rs 59,031 crore in FY10 as
against guidance of Rs 55,000 crore.

In a press conference, BHEL said the company's order book stood

at Rs 1.43 lakh crore versus Rs 1.34 lakh crore on quarter-on-
quarter basis (QoQ). The company has received orders worth Rs
9,000 crore in fourth quarter versus Rs 15,300 crore. It is on track
to become USD 10-11 billion turnover company by FY12.

 The company's trailing 12-month (TTM) EPS was at Rs 76.58

per share till December quarter results of 2009. The stock's price-
to-earnings (P/E) ratio was 31.21. The latest book value of the
company is Rs 264.32 per share. At current value, the price-to-
book value of the company was 9.04. The dividend yield of the
company was 0.71%.

The stock's price-to-earnings (P/E) ratio stands at 31.30.

Key
Developments BHEL gets order worth $1.35 bln

Mon Apr 19, 2010 1:30pm IST

MUMBAI (Reuters) - Indian electrical equipment maker Bharat Heavy

Electricals Ltd said on Monday it had got an order worth 63 billion rupees
($1.35 billion) to set up two coal-fired thermal units of 800 megawatts
each in Karnataka.

 Bharat Heavy Electricals Limited And Nuclear Power Corporation

India Ltd JV To Rope In Private Partner Soon-Business Standard
Thursday, 1 Apr 2010 

Bharat Heavy Electricals Limited Gets INR5,778 Crore Order-Business

Line
Tuesday, 2 Mar 2010 
Business Line reported that Bharat Heavy Electricals Limited has secured
an order worth around INR5,778 Crore for a couple of thermal power
projects in Maharashtra. The contract, awarded by Indiabulls Group firm
Elena Power & Infrastructure Ltd (EPIL), entails setting up projects at
Nashik (5x270 MW) and Amravati (5x270 MW). The Company's scope of
work in the contract involves design, engineering, manufacture, supply,
erection and commissioning of steam turbines, generators and boilers,
along with associated auxiliaries and electricals, besides modern controls
and instrumentation (C&I) and electrostatic precipitators (ESPs).The
turbine generators and boilers will be manufactured at the Company's
Haridwar and Tiruchi plants respectively, and the C&I systems will be
supplied by the Company's electronics division, Bangalore. 

19th Feb,2010

Bharat Heavy Electricals Limited And Sheffield Forgemasters Ink Tech

Transfer Pact-Business Standard
 Bharat Heavy Electricals Limited Announces MoU With Toshiba
Corporation
Wednesday, 17 Feb 2010 

Bharat Heavy Electricals Limited Bags INR10.0 Billion Order From

Bhutan-Business Standard
Monday, 8 Feb 2010 
Business Standard reported that Bharat Heavy Electricals Limited said it
has bagged a INR1,000 crore (INR10.0 billion) contract for supplying
equipment to a hydro power project in Bhutan. The Company has secured a
INR1,016 crore (INR10.160 billion) contract from Punatsangchhu
Hydroelectric Project Authority, Bhutan for the electro-mechanical
equipment package for a 1,200 MW (6x200 MW) hydroelectric project.
The order envisages manufacture, supply, erection and commissioning of
the electro-mechanical equipment for the 1,200-MW Punatsangchhu-I
Hydroelectric project. The project is being set-up under a bilateral
agreement between the Government of India, and the Royal Government of
Bhutan. 

Bharat Heavy Electricals Limited Proposes Joint venture Agreement

With Madhya Pradesh Power Generating Company
Wednesday, 27 Jan 2010 
Bharat Heavy Electricals Limited announced that the Company will be
signing a joint venture agreement with Madhya Pradesh Power Generating
Company on January 28, 2010 for a formation of a joint venture company
to set up 2x800MW supercritical Thermal Power Plant in Khandwa,
Madhya Pradesh. 

Bharat Heavy Electricals Limited Declares Interim Dividend

Thursday, 21 Jan 2010 
Bharat Heavy Electricals Limited announced that the Board of Directors of
the Company at its meeting held on January 21, 2010, has declared and
approved payment of Interim Dividend at 110%, INR11 per Equity Share
for the financial year 2009-2010. 

Bharat Heavy Electricals Limited Gets INR420 Million Power Plant

Order-Reuters
Wednesday, 6 Jan 2010 
Reuters reported that Bharat Heavy Electricals Limited has got an order
worth INR420 million to build a solar power plant in the southern state of
Karnataka. The three megawatt plant will be completed in eight months.
 The order has been placed by Karnataka Power Corp Ltd. 

 
Bharat Heavy Electricals Limited Gets $135 Million Power Plant Order-
Reuters
Monday, 21 Dec 2009 
Reuters reported that Bharat Heavy Electricals Limited has got an order
worth INR6.4 billion ($135 million) for a 270 megawatt power project in
the eastern state of Jharkhand. The Company will design, engineer,
manufacture, supply, erect and commission the steam turbine, generator
and boiler for the power plant.

52 Week Rs 2585/1570/-
High/Low
Average 350901
Volume
Beta 0.95
P/E Ratio 37.90
EPS 63.64
Current Ratio 1.29
Quick Ratio 1.02
Book Value 264.32
Long Term .015
Debt Equity
Ratio
Return on 26.29
Equity
Return on 8.60
Assets
Return on 25.88
Investments
 SUZLON ENERGY
Overview Suzlon Energy Limited (SEL) is an India-based wind power company. The
Company is engaged in the manufacture of wind turbine generators
(WTGs) of various capacities and its components. Its other operations
include sale/sub-lease of land, infrastructure development income, sale of
gear boxes, sale of foundry and forging components, and power generation.
It has manufacturing plants at Daman, Pondichery, Bhuj, Chhadwel
(Dhule) and Vadodara. The Company’s subsidiaries include Hansen Drives
Limited, Hansen Drives Pte Limited, Hansen Wind Energy Drives (China)
Co Ltd., PowerBladesGmbH, PowerBlades SA, REpower Australia Pty
Ltd. and REpower Canada Inc. During the fiscal year ended March 31,
2009 (fiscal 2009), the Company acquired a 37.82% interest in REpower
Systems AG. The Company operates in India, Europe, United States and
China.
Financial : For the nine months ended 31 December 2009, Suzlon Energy Limited's
Synopsis revenues decreased 15% to RS146.74B. Net loss totaled RS7.94B, up from
RS784.1M. Revenue reflect a significant decrease in income from
operations, a decrease in other operating income and lower other income.
Higher loss reflects a significant rise in purchase of traded goods, higher
employee costs, a significant rise in depreciation expenses and higher other
expenditures
Key
Suzlon Energy Limited's REpower Systems AG Concludes Contract With
Developments
Daunia Savignano
Thursday, 8 Apr 2010 
Suzlon Energy Limited's REpower Systems AG announced that it has
concluded a contract for the supply of 18 wind turbines with Daunia
Savignano, a subsidiary of the Italian Tozzi Group. The turbines of the
REpower MM92 type each have a hub height of 80 meters and a rated
output of 2.05 megawatts (MW). They are destined for use in the
Savignano wind farm in southern Italy. REpower Systems AG is already
erecting 20 such turbines at this wind farm. 

Suzlon Energy Limited Receives 18 MW Repeat Order From Gujarat

State Fertilizers & Chemicals Ltd
Tuesday, 6 Apr 2010 
Suzlon Energy Limited announced that it has won a repeat order form
Gujarat State Fertilizers and Chemicals Ltd. (GSFC) to set up, operate and
maintain an 18 MW wind energy project at Adodar site in the Porbandar
District of the sate of Gujarat, India. The project will comprise of 12 units
of the Company's S82-1.5 MW wind turbines. 

Suzlon Energy Limited's REpower Systems Gets Poland Order-DJ

Friday, 26 Mar 2010 
Dow Jones reported that Suzlon Energy Limited's REpower Systems AG
has got an order to supply 15 wind turbines for the Lipniki wind farm in
Poland. Suzlon, which owns 90.71% of REpower, didn't specify how much
the order is worth. 

Mangalam Cem Places Order With Suzlon Energy Limited

Monday, 8 Mar 2010 
Suzlon Energy Limited announced that Mangalam Cem has finalized order
for installation of 6 wind mills of 1.25 MW each (total capacity 7.5 MW),
at Jaisalmer. The total order value is INR390 million(INR39 crore) with the
Company. These wind mills are expected to be commissioned by end of
June, 2010. 

Suzlon Energy Limited Secures 52.5 MW Order From Gujarat State

Petronet Ltd
Thursday, 4 Mar 2010 
Suzlon Energy Limited announced that it has won a major order from
Gujarat State Petronet Ltd. to set up, operate and maintain its 52.5 MW
wind project in the Rajkot and Porbandar districts of Gujarat. The project
will be supplied in 35 units of Suzlon's model S82-1.5 MW wind turbine
generators, and is scheduled to be completed and commissioned by July,
2010. The power generated from this project will be purchased by Gujarat
Urja Nigam Limited under a long term PPA with Gujarat State Petronet
Ltd. 

Suzlon Energy Limited Secures Order From L&T Infrastructure

Development
Thursday, 18 Feb 2010 
Suzlon Energy Limited announced that it has won an order from L&T
Infrastructure Development Projects Limited a subsidiary of Larsen &
Toubro Ltd, to set up, operate and maintain a 8.7 MW wind energy project.
The project will comprise of three units of Suzlon's S82- 1.5 MW turbines
and two units of Suzlon's S88- 2.1 MW wind turbine generators and is
scheduled to be completed and commissioned by March 30, 2010. The
project will be set up in Tamil Nadu for L&T Infrastructure Development
Projects Limited. The power generated from this project will be wheeled
for captive use at L&T facilities in Tamil Nadu under an energy wheeling
agreement with the Tamil Nadu Electricity Board. 

Suzlon Energy Limited's RE power Systems AG Secures 52MW Order

for projects in Northeastern France
Tuesday, 16 Feb 2010 
Suzlon Energy Limited announced that RE power Systems AG in which
Suzlon Energy Limited is majority shareholder with 90.71% holding and
EOLE-RES S.A., one of the French wind and solar power developers,
based in Avignon, have signed an agreement for the supply of 26 wind
turbines. The RE power MM92 turbines with a hub height of 88.5 meters
and 2 megawatts of rated power are destined for Langres Sud wind farm in
the department of Haute Marne in Champagne Ardennes region. EOLE-
RES S.A. is the French subsidiary of RES Mediterranee SAS. The 26 wind
turbines are to be delivered and commissioned by October 2010. 

Suzlon Energy Limited's REpower Systems AG And RWE Sign Contract

For 295 MW From Offshore Wind Farm
Monday, 1 Feb 2010 
Suzlon Energy Limited announced that REpower Systems AG in which
Suzlon Energy Limited is majority shareholder with 90.71 holding and the
RWE project company for Nordsee Ost (North Sea East) have concluded a
contract on the delivery of 48 offshore wind turbines. The turbines of the
type REpower 6M have a total capacity of approximately 295 megawatts
and are intended for the Nordsee Ost offshore wind farm, due to be built in
the German Bight between 2011 and 2013. The wind farm will be situated
about 22 miles (35 km) north of the island of Helgoland, at a depth of 22 to
25 meters. REpower will supply the nacelles and hubs after manufacturing
the same at the Company's offshore production facility in Bremerhaven as
well as the rotor blades and towers for the project. REpower will also be
responsible for the start up of the wind farm and for servicing.   
Suzlon Energy Limited's Suzlon Wind Energy A/S Secures Order in
Sweden.
Saturday, 16 Jan 2010 
Suzlon Energy Limited announced that its international arm Suzlon Wind
Energy A/S has received first order in Sweden. The order from Triventure
AB, respected wind power developer and consultant in Sweden, comprises
of two s88-2.1 MW wind turbines. The 4.2 MW Assjo project, located 150
km from Goteborg and Stockholm, will be delivered by SWEAS through a
contract that covers engineering, procurement and construction. 

REpower Systems AG Appoints Suzlon as Sales Agent for United States

and Australia Markets
Monday, 11 Jan 2010 
REpower Systems AG announced that REpower Systems AG and Suzlon
Energy Limited have entered into an agreement wherein local Suzlon
subsidiaries in the United States and Australian/New Zealand markets will
support REpower as sales agents. 

Suzlon Energy Limited Receives 21 MW Repeat Order From Gujarat

Alkalies & Chemicals Ltd
Monday, 11 Jan 2010 
Suzlon Energy Limited announced that it has won a repeat order from
Gujarat Alkalies & Chemicals Ltd (GACL) to set up, operate and maintain
a 21 MW wind energy project at Maliya Miyana, in the Rajkot district in
the state of Gujarat, India. The project will comprise of 14 units of the
Company's S82 - 1.5 MW wind turbines. 

 
Suzlon Energy Limited Secures Order From KRBL Ltd
Thursday, 7 Jan 2010 
Suzlon Energy Limited announced that KRBL Ltd has given a purchase
order to Suzlon Energy Ltd for the set up of 8.1 M.W Wind Turbine
Generator(s) plant in the state of Tamilnadu (India). This Project will be
operative before March 31, 2010. 

Suzlon Energy Limited Wins Repeat Orders From ITC Ltd

Monday, 4 Jan 2010 
Suzlon Energy Limited announced the signing of repeat orders with ITC
Limited, to set up, operate and maintain two new wind power projects in
the states of Karnataka and Maharashtra. The project in Karnataka will add
21MW of capacity from ten units of Suzlon's S88 - 2.1 MW turbine, while
the Maharashtra project will add 6 MW of capacity from four units of
Suzlon's S-82 1.5 MW turbine. These repeat orders follow earlier wind
projects commissioned by Suzlon in Tamil Nadu and Maharashtra for ITC
through the concept to commissioning solution model. 

Suzlon Energy Limited Aiming To Close REpower Systems AG Purchase

Soon-DJ
Thursday, 10 Dec 2009 
Dow Jones reported that Suzlon Energy Limited aims to push for the
completion of its purchase of REpower Systems AG in the next few
months after it finalizes new bank financing. Suzlon currently holds 92% of
REpower, but under German law must buy out the remaining shareholders
in order to exercise full control and integrate the two companies. At the
current value of REpower's shares, 8% of the Company would cost
 approximately $150 million. 

Suzlon Energy Limited Wins 31.5 MW Order With Rajasthan State

Mines And Minerals Limited
Wednesday, 9 Dec 2009 
Suzlon Energy Limited announced that it has secured a order from
Rajasthan State Mines and Minerals Limited for 31.5 MW of capacity. The
order comprises of 15 units of the Company's S88 2.1 MW wind turbines to
be installed at the Tejuva site in Jaisalmer district of Rajasthan. 

52 Week Rs145.7/53.8
High/Low
Average 18350192
Volume
Beta 1.87
P/E Ratio
EPS -3.31
Current Ratio 1.89
of last 3 years
Quick Ratio 1.27
Book Value 41.73
Return on 2.84
Equity
Return on 1.33
Assets
Return on 2.03
Investments

ANALYSIS OF DLF LTD :-

EPS 8.61
P/E RATIO 34
 BETA 1.61
DEBT/EQUITY RATIO 0.78
MARKET CAP 511763.35

DIVIDEND PAYOUT 23.79

RATIO
SALES 28225.93
CURRENT PRICE 295
52 WEEK HIGH/LOW 491/221

PRICE CHART OF DLF LTD.

In a tough economic environment over the last few quarters, the company saw demand evaporate
in all segments of real estate business – residential and commercial, sale or leasing. In order to
weather the turbulent times, the Company affected a strategy which allowed itself to be liquid,
whilst it tested the right market conditions where it could attract significantly larger number of
end customers. Value proposition being a key element of this strategy, the Company launched 2
different projects across India in the residential space and demonstrated leadership position
within the industry to bring back demand.
The result of the above was that the Company made notable sales in its affordable housing
segment. In continuation of this strategy in April 2009, DLF also launched its “city-centre”
residential project in Delhi, which saw exuberant response with all 1,356 units booked in just one
day.

The share price has seen a 52-week high of Rs 490.80 and a low of Rs 221 on BSE. Current EPS
& P/E ratio stood at 8.61 and 34 respectively.

DLF has increased rates of its inaugural project in Bangalore named as DLF Westend Heights.
DLF has increased price to Rs 3000/sq ft from its previous price of Rs 1850sq/ft, which was set
up in April.

Increasing input costs was the cause of the price increase explains a company representative.

The project is being formulated in a land region of 27.5 acres.

The project comprises 1980 units spread across 19 towers, which are 18 floors high. Westend
Heights is the initial segment of New Town, with high-rise apartments.

.ANALYSIS OF JAIPRAKASH ASSOCIATES:-

EPS 7.58
P/E RATIO 13.65
 BETA 1.66
DEBT/EQUITY RATIO 2.00
MARKET CAP 283957.42

DIVIDEND PAYOUT 15.90

RATIO
SALES 57641.80
CURRENT PRICE 131.70

52 WEEK HIGH/LOW 180/87

PRICE CHART OF JAIPRAKASH ASSOCIATES:-

JP Associates looks very interesting. It has spent one year in hibernation, so it seems to be
making all the right noises of breaking out upwards from here though it hasn’t yet broken out. It
will probably have a buy on the stock.
The share closed at Rs 157.15, up Rs 4.50, or 2.95%. Market capitalization stands at Rs
33,344.73 crore. 
The company touched its 52 week high Rs 180.00 and 52 week low Rs 84.83 on 21 Oct, 2009
and 24 Apr, 2009, respectively. Currently, it is trading -12.69% below its 52-week high and
85.25% above its 52-week low. 
The company's trailing 12-month (TTM) EPS was at Rs 8.72 per share. (Dec, 2009). The stock's
price-to-earnings (P/E) ratio was 18.02. The latest book value of the company is Rs 29.39 per
share. At current value, the price-to-book value of the company was 5.35. The dividend yield of
the company was 0.64%.