UNICON INVESTMENT SOLUTIONS

Oct 23, 2010

Allahabad Bank Q2FY11 Result Update

Allahabad Bank Q2FY11 Result Update

Ø Allahabad Bank (ALBK) delivered another strong quarter, with net profits increasing by 20% to INR 4025 Mn YoY.

Ø The net interest income increased by 60% to INR 9690 Mn YoY. NIMs improved to 3.34% from 3.10% sequentially and 2.84% YoY..

Ø ALBK’s Gross NPA declined to 1.77% in Q2FY11 from 1.78% YoY and Net NPAs increased to 0.56% from 0.35% YoY. ALBK is will capitalised with CAR at 13.49% wth Tier I Capital at 8.41%.

Outlook & Valuation

At the CMP INR 240 stock trades at 1.3x of its FY12E book value, we have BUY rating on the stock for 12-18 months target of INR 305.

Thanks & Regards,

Unicon Wealth Research

YES Bank Q2FY11 Result Update

YES Bank Q2FY11 Result Update

Ø YES Bank net profits increasing by 58% to INR 1763 Mn YoY. This was supported by strong loan growth of 86% YoY to INR 303.5 Bn. The deposits grew by 107% YoY to INR 400 Bn.

Ø The net interest income grew by 78% YoY to INR 3132 Mn. Bank’s net interest margins (NIMs) remained stable at 3% and CASA ratio to 10.1%.

Ø Along with expansion of loan book the bank maintained a stable asset quality, with gross & net NPAs declining to 0.22% & 0.06% from 0.31% & 0.0.8% YoY respectively.

Outlook and Valuation

At the CMP INR 353 the stock trades at 2.6x of its FY12E Book Value., we have a BUY rating on the stock for target price of INR 461 for 12-18 months.

Thanks & Regards,

Unicon Wealth Research

Oct 19, 2010

Coal India Ltd - IPO Company report

Larsen & Toubro Ltd_Q2FY11 Result Update

Larsen & Toubro Ltd - Q2FY11 Result Highlights

L&T’s top-line came in line with Unicon’s expectation but positively surprised on margin front. While top-line at INR 83bn grew by 17.8% YoY, the operating profit was higher by 20% on yearly basis to INR 10bn. The operating profit margin, marginally improved by 20bps to 10.8%, (our estimate 10.2%). Due to sharp run up in base metal prices during the quarter, going forward, we expect its margin to ease. Improvement in margin was led by reduced cost, as percentage of sales, in cost of materials and sub-contracting charges. Net profit after tax at INR 6.9bn was higher by 19.6% on yearly basis before extraordinary items.

Outlook and Valuation

Having regard to the performance and order intake during 1HFY10, management guidance of 25% growth in its order-book and 20% topline growth seems achievable for FY11.

Currently, stock trades at 22.7 its FY12e earning per share of 88.7 and price to sales ratio of ~1.8x. Upgrade to Accumulate for price target of 2,250.

Thanks & Regards,

Unicon Wealth Research