Recommendation: Buy

Current price: Rs 58 (at the time of publishing this tip)

Price target: Rs 98

Key points:

The total business of the Indian Overseas Bank (IOB) improved from Rs 133,413 crore in Q3FY08 to Rs 162,575 crore in Q3FY09, contributed by deposits growth of 15% in Q3FY09 over that in Q3FY08 and advances growth of 31% in Q3FY09 over that in Q3FY08. The CASA ratio for the bank stood at 29.23% in Q3FY09 against 30.93% in Q3FY08. The credit deposit ratio for …

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Equity Market
Monthly
Return % As on 31st Jan 08

BSE Sensex
-2.31%

S&P Nifty
-2.85%

BSE MID CAP
-9.08%

BSE SMALL CAP
-9.34%

BSE100
-3.96%

BSE200
-4.28%

BSE Bankex
-10.17%

BSE IT
0.38%

Dow Jones
-8.84%

FTSE
-6.42%

HangSeng
-7.71%

KLSE
0.88%

Kospi
3.35%

Nikkei
-9.77%

MSCI Emerging Markets Index
-3.12%

BSE Realty
-26.65%

Market Levels
As on 31st Jan 09

INR USD
48.875

Inflation
5.64

Gold
927.85

Crude (Brent)
44.94

10 Year US Treasury
2.83%

10 Year G Sec
6.21%

5 Year AAA
8.85%

5 Year G Sec
5.95%

Source: Bloomberg, MFI

The benchmark indices fell in January 2009 erasing out the gains reported in late December’08 and early January’09. This was despite the moderating inflation and the better-than-expected IIP numbers for November 2008 (reported in January). The weakness likely came in …

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… Continued from Part 1 & Part 2 of the series …

Stock name
Current price
Target price
% change
Timeframe

Bank of India
Rs 230
Rs 300
30%
9-12 months

LIC Housing Finance
Rs 238
Rs 310
30%
9-12 months

Dhampur Sugar
Rs 29
Rs 36
25%
9-10 months

Bank of India: BoI reported 41% yoy growth in net interest income coupled with a 70% yoy growth in the PAT. Along with a consistent performance in the core business (advances up 31% and deposits up 26% yoy), other income (profit from sale of securities as a significant contributor …

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… Continued from Part 1 & Part 2 of the series …

What you should NOT DO in the market

Try and time the market. As mentioned in Part 1, the market does not follow any fixed pattern or trend. It will take its own course. Trying to time the market is a common mistake made even by veterans who have spent years and years studying and understanding the market. Its better to let the market decide its own course, …

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… Continued from Part 1 of the series …

Stock name
Current price
Target price
% change
Timeframe

Fortis Healthcare
Rs 65
Rs 92
42%
12-15 months

Praj Industries
Rs 50
Rs 71
41%
12-15 months

Gateway Distriparks Ltd
Rs 71
Rs 95
34%
9-12 months

Fortis Healthcare: It declared its Q3FY09 standalone results with a net loss of Rs 1.63 crore as against net profit of Rs 1.60 crore last year. Though the company reported negative numbers at the PAT level, overall there has been an improvement in its operating performance compared to the previous quarter and the …

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Stock name
Current price
Target price
% change
Timeframe

IPCA Labs
Rs 327
Rs 530
62%
12-15 months

Sanghvi Movers Ltd
Rs 67
Rs 107
60%
12-15 months

Everest Kanto
Rs 125
Rs 196
57%
12-15 months

Ipca Lab: The topline grew ~13% yoy to Rs 321 crore. Net profit from the continuing business grew 54% yoy to Rs 42.41 crore. Ipca’s EBITDA margin, in Q3FY09, expanded by over 400 bps yoy on account of higher revenue from promotional markets. The EBITDA margin before forex loss provision of Rs 19.23 crore was at 22.11%. Post forex loss adjustment of Rs …

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… Continued from Part 1 of this series …

Golden rules of investing in the market

The first and foremost step in making every financial decision is to have a goal or objective in place. Goal can be short-, medium- or long-term depending on the individual’s requirement. Ideally, you should choose a few momentum-based stocks to meet your short term goals and invest the rest in growth and value stocks with sound fundamentals, good track record and professional management to …

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