South Indian Bank is looking good to buy for medium to long term perspective

Aggressive Old Private Sector bank for your portfolio! South Indian Bank (SIB) was incorporated in 1928 during the Swadeshi movement. The establishment of the bank was the fulfillment of the dreams of a group of enterprising men who joined together at Thrissur, a major town (now known as the Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe, efficient and service oriented repository of savings of the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest. SIB is engaged in personal banking, NRI banking, business banking, and general banking services in India. Translating the vision of the founding fathers as its corporate mission, the bank has during its long sojourn been able to project itself as a vibrant, fast growing, service oriented and trend setting financial intermediary. SIB has grown at 25% CAGR in the last five years in terms of business and PAT. SIB reported a strong Q3FY13 largely driven by better?than? expected rebound in margins. Net profit of SIB rose 25.44% to Rs 128.25 crore in the quarter ended December 2012 as against Rs 102.24 crore during the previous quarter ended December 2011. Total Operating Income rose 19.51% to Rs 1127.75 crore in the quarter ended December 2012 as against Rs 943.61 crore during the previous quarter ended December 2011. Steady improvement in asset quality with Gross NPA at 1.6% down QoQ due to Rs0.4bn restructuring adjusted for which asset quality performance was satisfactory and NNPA stood at 0.7%. NIM improving from 3.05% last year same quarter to 3.24% in Q3FY13. Overall, Q3FY13 was a stable quarter. Outlook and valuation: Currently, the stock is trading at moderate valuations of 1.2x FY2014 BV. In light of capital-raising and strong expansion plans, I value the bank at 1.5x FY2014 BV with a target price of Rs 35 per share Investment Rationale Bank s profit grew ~ 3 times in last five years which is almost equal to the growth rate of industry leaders in private sector like HDFC and ICICI. Stock has been on the uptrend and has gone up more than 20% since last year, but HDFC, ICICI and Axis Banks have grown more than 45% during the same period. It has got scope to move up further post 29th Jan RBI monetary policy Now that the stock has consolidated b/w 27-28 for some time, it started moving up. I expect this movement to continue till it reaches 35. Conclusion: Both from the fundamental and technical perspective this stock looks attractive and investors and traders should look at buying this stock on dips.

Some Stock Recommendations for short term

Short Term Stock Recommendation calls:(1 to 3 months)
 
1) Sunil Hi-Tech Engineers (SUNILHITEC) -    CMP-81    Target-120+

Company information:-

Sunil Hi-Tech Engineers (SUNILHITEC) is engaged in the fabrication, erection, testing and commissioning of thermal power plants. It was incorporated as a private limited company on May 29, 1998 and converted into a public limited company on Aug. 18, 2005. 

The company is engaged in the niche segment of fabrication, erection and testing and commissioning of bunkers, ESPs, boilers, TG sets in the power plants, and infrastructure projects including structural steel works. It has to its credit many projects executed varying from 30 MW Parli TPS to 500 MW like Korba super thermal power station (STPS), Chandrapur STPS, Vindhachal STPS, Talcher super thermal power plant (STPP), Rihandh STPP, the 250 MW Suratgarh and 210 MW Khaperkheda among several others projects. 

Several projects bagged in 2007 include structural fabrication and erection works for JSW (Ratnagiri) at the 4 x 300 MW thermal power plant in Jaigarh, Maharashtra valued at Rs 1,117.5 million; supply, fabrication and erection of structural steel at the Parli project-2 valued at Rs 763.64 million and Paras thermal power station valued at Rs 760.83 million for Maharashtra State Power Generation Company; hydro power projects in Himachal Pradesh for Dodson-Lindblom valued at Rs 450 million; structural fabrication erection works at 2x600 MW Hissar Thermal Power Project for Reliance Energy valued at Rs 370 million; structural steel works for RINL Vishakapatnam valued at Rs 253.2 million; and many more. 

The company caters to National Thermal Power Corporation, Bharat Heavy Electricals, Maharashtra State Power Generation Company, Rajasthan Rajya Vidyut Utpadan Nigam, Reliance Energy, TATA Projects, and several others. The registered office is located at Ratnadeep, Jainagar, P.O. Parli-Vaijnath-431520, Beed district, Maharashtra and corporate office at 97, East High Court, Ramdaspeth, Nagpur-440010

2)Bharti Airtel           CMP-359         Target-400+

3) IVRCL Ltd            CMP-34            Target-42+ 

4) Lanco Infratech Ltd.   CMP-12.45   Target-20+ 

5) Suzlon Energy       CMP-21    Targer-25+ 

BSE & NSE Trading Holidays for the year 2013

The indian stock market holidays for the year 2013:

Its important for traders to know when markets are closed due to holidays. This helps them to be aware of time to expiry and plan their trades better.

Holidays	Date	Day
Id-E-Milad	25th January 2013	Friday
Holi	27th March 2013	Wednesday
Good Friday	29th March 2013	Friday
Mahavir Jayanti	24th April 2013	Wednesday
Maharashtra Day	1st May 2013	Wednesday
Ramzan ID	9th August 2013	Friday
Independence Day	15th August 2013	Thursday
Krishna Janmastami	28th August 2013	Wednesday
Ganesh Chaturthi	9th September 2013	Monday
Mahatma Gandhi Jayanti	02nd October 2013	Wednesday
Bakri Id	16th October 2013	Wednesday
Muharram	14th November 2013	Thursday
Christmas	25th December 2013	Wednesday

STOCK MARKET PSYCHOLOGY How it WORKS?

Psychology plays a big part in stock market. As stock market runs by human so human mind plays a big role here. Sometimes investors tend to take wrong decision for this.

Here some psychological factors that every investor should know on order to succeed in stock market.

There is a very simple formula in stock market. If someone follow this he should not face any lose in stock market. The golden rule is “BUY LOW SELL HIGH”. Many people know about this but why they cannot stick to this rule. The answer is human psychology.

As we know fear and greed is a moderator in stock market. Many people get trapped by this emotion.

Three psychological factors mainly dominate stock market.

•  Social proof theory

• Fear

• Greed

Social proof theory impact
If we see others buying stocks, then with using our brain we assume it is the best time to buy. We do not think the logic behind it. We should always use our own brain to take decision. However, it is not bad to seek suggestion from experts.

Social proof alone however, does not create such a strong effect that we will act so contrary to our own interests. The other key force at play is scarcity.

Fear

When price start falling down we become afraid, though we know, it is the nature of stock market. Sometimes we become a victim of panic sell. We need to analyze stock market in a cool brain.

Greed

It is also plays a very big role. When price is getting high, we become greedy and think we also can be benefited. We do not judge other consequences that lead us towards a dangerous way.

so the final word is, in every situation we have to think carefully and have to analyze the market.

Demat Account Basics

 

• Opening a Demat Account
• Fees Involved
• Where does one begin?
• How many shares you need to have to open a demat account?
• What will it cost?
• Nomination Possible?
• Transfer of Shares between Depository Participants

Opening a Demat Account

Answer: To open a Demat account an investor needs to open an account with a Depository Participant registered with SEBI. For opening an account investor needs to fill up an account opening form and submit copies of the approved documents to serve as proof of identity (POI), proof of address (POA) as specified by SEBI and PAN card in original at the time of opening of account. All applicants should also carry original documents for verification. DP also provides the investor with a copy of the agreement and schedule of charges.After processing the account opening documents, the DP will provide an account number (client id) to applicant. Once the account of an applicant is opened with a DP, he/she becomes a client which is also called BO (Beneficiary Owner) and the account number allotted to him is called BO-ID (Beneficiary Owner Identification number). 

Also, the In-Person Verification (IPV) of the applicant should be carried out by the DP at the time of account opening. The staff of DP should establish the identity of the applicant (guardian in case of minor) by verifying the photograph affixed in the account opening form as well as the proof of identity with the person concerned. In case of joint account, IPV needs to be carried out for all the holders of the account.

 

Demat services are currently offered by most of the broking houses, as well as several financial and banking institutions. The entities offering depository services are known as depository participants. By definition, a depository participant is an intermediary between depositories, like NSDL and/or CDSL, and an investor. 

 Fees Involved

Answer: To open a demat account you need to pay certain fees. This fee is divided into four major heads:

•             Annual maintenance fee

•             Custodian fee

•             Transaction fee

All the charges vary from one DP to another.

Annual maintenance fee

This fees is levied for maintenance of account.

Transaction fee

The fee is levied for debiting securities to and from the account on a monthly basis. While some DPs, charge a flat fee per transaction, others peg the fee to the transaction value, subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice-versa. This fee varies for both demat and remat requests. For demat, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. 

   Where does one begin?

Answer: First step is to open an account with a DP. Most of the broking houses, as well as several financial and banking institutions offer depository services and thus are also known as depository participants. It's not necessary to have DP of your broker, but many brokers incentivize their clients by offering lower charges for opening demat accounts with their DPs.

Here is a broad list of documents you may need for opening an account (you won't need all of them though): 

Proof of Identity

o             PAN card

o             Voter's ID

o             Passport

o             Driver's license

o             Bank attestation

o             IT returns

o             Electricity/ Landline phone bill

o             ID cards with applicant's Photo, issued by

a.            Central/State Government and its Departments,

b.            Statutory/Regulatory Authorities,

c.             Public Sector Undertakings,

d.            Scheduled Commercial Banks,

e.            Public Financial Institutions,

f.             Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student)

g.            Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members and

o             Proof Of Address:

I.             Ration card

II.            Passport

III.           Voter ID Card

IV.          Driving license

V.            Bank passbook / Bank Statement (NSDL/POLICY/2007/0074 dated December 1, 2007 and NSDL/POLICY/2008/0037 dated May 27, 2008)

VI.          Verified copies of

a.            Electricity bills (not more than two months old),

b.            Residence Telephone bills (not more than two months old) and

c.             Leave and License agreement / Agreement for

 

Only photocopies of the documents are required for submission, but originals are also required for verification. The applicant also needs to submit a passport size photograph with the account opening form. 

   How many shares you need to have to open a demat account?

Answer: A demat account can be opened with no balance of share and there is no minimum balance to be maintained. You can also have zero balance in your account. 

   What will it cost?

Answer: To open a demat account you need to pay certain fees. this fee is divided into four major heads: 1.) Annual maintenance fee 2.)Transaction fee. All the charges vary from one DP to another. 

   Nomination Possible?

Answer: Yes, nomination is possible you can have a nominee of your choice by filling up the nomination details in the account opening form. This enables the nominee to receive the securities after the death of the holder of the demat account.

   Transfer of Shares between Depository Participants

Answer: Transfer of shares is possible, you need to fill the Deliver yInstruction Slip Book (DIS) and submit the same to your DP for transferring your shares from one DP account to another.. However you need to check, whether both Demat account's Depository Participant is same or not(CDSL or NSDL) If both of them are different, then you need an INTER Depository Slip (Inter DIS). If they are same, then you need INTRA Depository Slip (Intra DIS).

Do try to submit that DIS when market is on. Accordingly, date of submission of DIS and date of execution of DIS can be same however difference of one day is also acceptable. For transfer, you also need to pay the broker some charges.