Stock Idea - Opto Circuits India

Recommendation: Buy

CMP = Rs 338

Price target: Rs 460

Key points:

• Opto Circuits India’s (Opto) non-invasive business is expected to grow at a compounded annual growth rate (CAGR) of 39.5% over FY2007-10E to Rs 550.7 crore on the back of rising demand for its sensors and patient monitoring systems, coupled with an increasing market penetration and innovative new launches.
• The invasive business would be driven by the increasing acceptance of the company's stents due to superior technology and better pricing. Further, the growing revenues from DIOR in Europe and the semi-regulated markets due to limited competition would also fuel the growth of the invasive segment. We expect the invasive segment (EuroCor) to contribute ~43% to the company's total revenues by 2010.
• Opto has recently completed its $70 million acquisition of Criticre Systems (Criticare), a US-based publicly listed company specialising in vital signs and gas monitoring instruments. We estimate the Criticare acquisition to generate incremental earnings of Rs 0.60 per share in FY2009E and Rs1.80 per share in FY2010E. We will incorporate the impact of the acquisition after the announcement of Opto's FY2008 results.
• Opto's fully diluted earnings (without Critcare) would grow at a CAGR of 35% over FY2007-10E on the back of a 57% CAGR in revenues. Opto is trading at attractive valuations of 16.9x FY2009E fully diluted earnings and 11.3x FY2010E fully diluted earnings.
• I maintain Buy recommendation on Opto with a price target of Rs 460 over next 6-7 months.

Stock Idea - Surya Pharmaceuticals

Recommendation: Buy

CMP = Rs 107

Price target: Rs 205

Key points:

• Surya Pharmaceuticals (Surya) reported an impressive 89.5% increase in revenues to Rs 156.5 crore in Q4FY2008. The revenue growth in FY2008 was equally robust with a jump of 63.2% to Rs 496.7 crore. An escalation in the raw material cost caused Surya's operating profit margin (OPM) to shrink by 420 basis points to 14.8% during Q4FY2008 and by 40 basis points to 17.0% in FY2008. Consequently, the operating profit grew by 46.8% to Rs23.1 crore in Q4FY2008 and by 59.0% to Rs 84.4 crore in FY2008.
• Despite higher interest and depreciation charges, Surya's net profit grew by an impressive 56.6% to Rs 12.8 crore in Q4FY2008 and by 95.4% to Rs 46.7 crore in FY2008. In addition to its investment in the sterile facility in Jammu, Surya has announced a capex of Rs 100 crore for further de-bottlenecking of the existing capacities and expansion of menthol capacities. This would lead to a substantial jump in the company's interest and depreciation costs in FY2009, thereby straining its profitability.
• At the current market price of Rs 107, Surya is trading at 3.6x its FY2009E diluted earnings of Rs 29.7 and 2.7x its FY2010E diluted earnings of Rs 39.9. At the current prices, Surya offers a remarkable combination of strong growth at cheap valuations.
• I maintain strong Buy call on this stock with a price target of Rs 205 over next 6 months.

Stock Idea - Aditya Birla Nuvo

Recommendation: Buy

CMP = Rs 1,507

Price target: Rs 2,035

Key points:

„      The consolidated revenues of Aditya Birla Nuvo (ABN) grew by 43.4% yoy to Rs 3,804.4 crore in Q4FY2008. The growth was driven by the solid performance of the insurance business, which grew by 78.3% yoy to Rs 1,477 crore, contributing 39% to the overall revenues. The garment, insulator, financial service, carbon black and telecom businesses also contributed well to the overall growth. The share of the high-growth businesses (garments, life insurance, BPO, software and telecom) in the total sales in Q4FY2008 improved to 76% as compared with 73% in the same period last year.

„      However, the operating profit margin (OPM) declined by 560 basis points to 5.2% on account of margin pressure in the key business segments and increased contribution of the insurance division. Consequently, the operating profit declined by 31% to Rs 197 crore. The telecom, insulator, rayon, textile and financial service businesses witnessed improvement in the profit before interest and tax (PBIT) margin while the margin declined sharply in the garment, carbon black, BPO, fertiliser and life insurance businesses, thereby reducing the overall margin by 430 basis points to 2.1%.

„      The company registered a net loss of Rs 21.8 crore as against a net profit of Rs 82.8 crore during the corresponding quarter last year due to higher depreciation and interest costs. The company continued to invest the cash generated from the value businesses into the growth businesses like life insurance and telecom. The company is also planning for aggressive retail expansion and joint venture for value-added fabrics. 

„      At the current market price, the stock trades at a price/earnings ratio of 40.2x FY2009E consolidated earnings and enterprise value (EV) / earnings before interest, depreciation, tax and amortisation (EBIDTA) of 13.0x FY2009E.

„      I maintain a Buy recommendation on ABN with a price target of Rs 2,035 over next 8-10 months.

---

Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.

Create your Future with Best of the Breed Online Casinos

Most of us crave for a big fortune and quick bucks. Some strive for their entire life to realize their dreams of earning huge money. While some act smart and create their future - with betting, and online casinos are the best place to try your luck! However, you must be aware of which is the best online casino and which actually help you create wealth. It is always wise that you first learn the tricks of the trade and then try your luck at casinos... Now the obvious question: How would I find which online casino is better?

Here is the site which provides unbiased and genuine reviews of various casinos across the America: USA online casinos - just for you. It is arguably one of the most popular online casinos review site listing only the best online casinos. Their experts continuously research various casinos and write detailed, genuine, and unbiased reviews so that the uses get the best information. It's fully recommended by me - go, try your luck now on finest online casinos in America!

Stock Idea - Bank of India

Recommendation: Buy

CMP = Rs 361

Price target: Rs 458

Key points:

• Q4FY2008 results of Bank of India were above our expectations. The profit after tax (PAT) was Rs 757 crore, indicating an impressive growth of 69.2% yoy. The net interest income for the quarter came in at Rs 1,216.8 crore, up 25.7% yoy on the back of continued robust growth in advances and expansion in net interest margin (NIM).
• The reported NIM for the quarter stood at 3.24%, indicating an expansion of 10 basis points yoy. The improvement in NIM was largely driven by margin expansion in international business, while the margin for the domestic business was flat at 3.71%. The non-interest income was up 13.3% yoy to Rs 653.3 crore. Importantly, the year-ago non-interest income included a one-time gain of Rs 52 crore from Nigerian oil bonds and a Rs 14 crore gain from sale of fixed assets.
• The operating expenses during the quarter were up marginally by 1.3% yoy to Rs 657.9 crore. The operating expenses growth was contained due to a 7.6% y-o-y decline in staff expenses, which helped to partly offset the 20.9% y-o-y increase in the other operating expenses. Consequently, the cost-income ratio improved significantly to 41.7% from 52.1% a year ago. Provisions and contingencies were down by 6.5% yoy, which in turn boosted the bottom line.
• The asset quality of the bank improved during the quarter as evidenced by a 8.1% yoy decline in the gross non-performing assets and a 27.1% yoy drop in the net non-performing assets. In line, the provisioning coverage ratio improved to 69.3% from 61.3% a year ago. The capital adequacy ratio (CAR) moved up to 12.95% from 11.58% a year ago, helped by qualified institutional placements (QIPs).
• At the current market price of Rs 360.7, Bank of India trades at 7.4x 2009E earnings per share (EPS), 4.1x 2009E pre-provisioning profit (PPP) per share and 1.8x 2009E book value (BV) per share.
• I maintain Buy recommendation on the stock with price target of Rs 458.

Getting a cash advance has never been easier...

Do you desperately need hard cash, immediately? What do you need the most in this situation is - CASH! There are many ways to obtain cash, like using credit cards, loans, or by puring earning more money. There is one more way: Cash Advances... These are the fastest way to obtain secure, online cash advance and payday loans. And when it comes to Cash Advance, perfectcashadvance is the undoubted and most preferred provider. With perfectcashadvance, applying and qualifying for payday loans is quick and easy, and there are no documents to fax at all! You can avail your own fast cash loan in 3 simple steps:

1. Complete their secured completely online application form,
2. Receive your loan approval within a short time after submitting form, and
3. Enjoy the funds in your account the next business day!

The application process is quite simple: it takes not more than 5 minutes to fill up their 100% online application form. Their lenders would then analyze your application and would suitably qualify you for a payday loan of upto $1500. It scores above others providers in a way because it is instant & easy; guaranteed safe & secure; and completely online. No physical documents to be submitted at any stage! Now getting a cash advance has never been so easy...

Stock Idea - Genus Power Infrastructure

Recommendation: Buy
CMP = Rs 563
Price target: Rs 673

Key points:

• Genus Power Infrastructures Ltd (GPIL) reported a 27.4% growth in the revenues. The meters sales continue to be robust, however the project sales were deferred due to rising input costs.
• The operating profit grew by 75.9% yoy to Rs 35.1 crore. The operating profit margin (OPM) reported a sharp 500-basis-point improvement to 18.1% on the back of a steep decline in the other expenses. The other expenses as percentage of sales decreased to 2.5% from 11.7% in Q4FY2007.
  
• The interest cost was up 12.4% to Rs 4.4 crore, while the depreciation charge rose by 107.5% to Rs 1.4 crore. Aided by better-than-expected operating performance the net profit of the company reported a growth of 102.1% to Rs 25.5 crore.
  
• The current order book of the company stood at Rs 417 crore with close to 60% coming from the meters business. The company was also the lowest bidder for orders worth Rs 450 crore. GPIL is a leading manufacturer of electronic energy meters. The company is well poised to benefit from the government's plan to spend on the country's power transmission and distribution sector.
  
• At the current market price, the stock trades at 11.6x its FY2009E and 8.9x its FY2010E earnings.
  
• I recommend buy call on this stock with price target of Rs 673.
  

Insurance - The Need Of Time. Are you In?

It is said that a human being is a social animal. Normal humans would like to be surrounded by like-minded people, their beloved ones, and friends. As we socialize, we increase our material belongings and losing any of our precious possessions would hurt us. To ensure that we do not lose much due to loss of our prized possessions, we generally tend to opt in for Insurance. If you are looking for quality quotes on Insurance, approach EZ Insurance Portal - the one stop shop for all your Insurance needs - be it life or non-life.

It offers competitive quotes from various providers on following type of insurance:

• Home insurance
• Auto insurance
• Life insurance
• Health insurance

It offers home insurance based on house structure, additional living, personal belongings, and liability protection. Auto insurance is offered after considering bodily or personal injury, collision, property damage, and uninsured coverage. It covers health insurance as per free-for-service and managed care facilities. It offers excellent life insurance solutions like term life, whole life, and universal life solutions. Besides offering different types of competitive insurance solutions, it boasts of a quality FAQ section and quick tips for each category. And what's more, it provides popular blog posts across the Internet for each topic! Get going... Get Insured now!