Company Report | Q1FY11 Result Update

Outlook/Commentary for Crude oil for the coming month

Key events that influenced price movements:

1. The Conference Board Leading Economic Index for U.S. increased 0.1 percent in July to 109.8, following a 0.3 Percent decline in June, and a 0.5 percent increase in May.

2.US FOMC in its interest meet reported U.S growth will be more modest than expected and said it will keep interest

rate lower for prolonged period.

3.Macro economic data from U.S throw up series of disappointing numbers raising growth concerns.

4.US vehicle sales aggregated to 10,45,092 units in July, up 5% year on year.

5. China’s passenger car sales in July increased 15.4% year on year to 822,300 units. Total auto sales were up 17%

year on year to 1.06 million units in July.

6.U.S Refiners boost production thus pushing demand for oil before the long maintenance period but end use lags as

products pile up.

7.Lack of hurricane related disruption.

8.Chinese crude oil imports drops 15% on month in July.

9.China ordered more than 2000 steel, cement and other energy-intensive factories be shut down by the end of

September.

New crude oil storage facilities come up for usage in China.

Outlook :

We Recommend Crude to move in Range of 72$ - 79$ for the month.

Pls refer to Disclaimer @ www.uniconindia.in

Consolidated Construction Consortium Ltd - Q1FY11 Result Update

Consolidated Construction Consortium Ltd - Q1FY11 Result Update

Result Highlight – Below Unicon’s expectation

Ø        Revenue of INR 5,080Mn was higher by 23% on YoY basis (against our expectation of INR 5,268Mn). While operating profit at INR 411Mn was higher by 36% on YoY basis, company disappointed on margin front.

Ø        The operating profit margins for the quarter under review were 8.1% against our estimate of 9.7%. This was owing to higher operating cost and staff cost, +33% and +30% respectively on YoY basis. Selling and distribution cost rose to INR 346.9Mn compared to INR 272Mn during same quarter last year, rise of 27% on yearly basis.

Ø        Higher depreciation cost at INR 28.67Mn (+33% YoY) and interest cost at INR 105.5Mn (+191% YoY) dragged the net profit margin. The higher interest out go was due to higher working capital requirements.

Ø        Consequently, Profit after tax at INR 188Mn, was marginally higher by 6% on yearly basis whereas the net profit margin stood at 3.7% compared to 4.3% during same period last year, marginally down by 59bps.

Order-book and Other Updates

During Q1FY11, company bagged several orders worth INR 17,056.9Mn which includes the construction of Goa Airport, Elevated stations for Chennai Metro and Power Plants. The current order-book of the company stands at INR 45,269.4Mn. The current order-book is 2.3x its FY10 revenue. Of the total order-book, ~53% is in Infrastructure segment, and remaining 47% is into realty segment catering to the need of residential (~3%), commercial (35%) and Industrial (9%). The average execution cycle of the current orderbook is about 18-20 months.

CCCL has formed a JV with Edac Energy for execution of power project order from Meenakshi group and also formed a subsidiary namely CCCL Power Infrastructure Services to cater to future BoP (Balance of Plants) projects.

Valuation

At the CMP of INR 83/share, CCCL trades at 10.6x its FY12e consensus earning per share of INR 7.8. Maintain Hold for lower price objective of INR 90/-. Key trigger for stock would be higher order-inflow and ramp up in projects execution.

Emami Ltd - Q1FY11 Result Update

Result Highlights

Emami Ltd posted revenue growth of 28% Y-o-Y to INR 2419.50 mn backed by a 25% volume growth.

The operating profit for the quarter was INR 658.50 mn, up 13% on a Y-o-Y basis.

PAT at INR 352.50 mn witnessed a growth of 127% as compared to the same quarter in the previous year.

Valuation

At the CMP of INR 438, the stock trades at ~17x its TTM EPS. Considering the strong growth in FMCG sector and the company’s expansion plans We recommend to ACCUMULATE the stock for a price objective of INR 505.

Seek the Expertise of Unicon India for Customized Portfolio Management Service

The growing complications in the capital markets
make the task of an investor all the more difficult nowadays. There are many issues he
has to take care of single-handedly, for example conformations with statutory rules,
regulations, investment methodologies, outcomes, analysis, etc. There is also a need for
a constant tracking mechanism, in order to keep a close watch on the volatile market. So
it is high time investors hired an expert who can manage all these vital issues effortlessly.

Established in 2004 by proactive and visionary entrepreneurs, Unicon Investment
Solutions can prove to be your ultimate investment guide that you can trust with great
amount of confidence. Whether you want effective portfolio management service or
investment banking solution, Unicon can exceed your expectations using its world-
class proprietary model, state-of-the-art analytical tools and sure-fire methodologies.

Every investor dreams to have a high-performing portfolio. An investment portfolio can
be prepared in a variety of ways to accomplish the eventual objective of upholding and
generating wealth. Indian financial markets are complicated and multifaceted enough that
money can be earned in any kind of investment environment. The foremost challenge
in making a profitable investment portfolio is being aware of precisely what to do
and when. Here, you can avail the portfolio management service of Unicon who can
recommend you on how to distribute your money, taking your financial objectives and
risk-taking ability into account.

The Company offers Discretionary Portfolio Management Schemes like Unicon
Optimizer and Unicon Growth for its diversified clients in the form of individuals,
corporate bodies, partnership firms, proprietors and NRIs. Already Registered with SEBI
to carry out its portfolio management activities under a license, Unicon boasts a team
of highly qualified and experienced portfolio managers and equity strategists who have
also the support of a group of fundamental, technical and derivative analysts. All these
professionals work round the clock using sophisticated tools and models and offer you
a custom-made portfolio that includes a thoughtful mix of equity, quazi-equity, money
market instruments and derivative products.

Unicon portfolio management service also includes strict risk management, professional
fund management, dedicated relationship manager, regular reviews and rebalancing and
timely performance reporting. A portfolio manager at Unicon has this to say, “We give
equal importance to client servicing and feedback in addition to making a fool-proof
investment evaluation strategy. Our elite group of advisors is well-versed and trained
on a wide array of wealth products to provide you a satisfying wealth experience.”

Unicon with more than 900 business offices and 4500 professionals across India is the
pioneer in the field of portfolio management service and other investment solutions.

Unicon Offers All-Important Information on How to Become Sub Broker

Stock investment has gained momentum in recent
years due to growing awareness among people about the potentiality of this investment
option. Cashing in on this opportunity, many stock broking companies have already setup
their offices to cater to the needs of the mounting stock investors. A lot of others are in
the pipeline. However, most investors, particularly novice ones, opt for stock brokers
with proven track record like Unicon Investment Solutions. With years of experience in
stock broking, investment banking and portfolio management, the Company is offering
world-class investment solutions to its esteemed investor community. It is also imparting
knowledge on how to become sub broker for the benefit of aspirants who seek to take it
up as a career option.

Starting its operations in 2004, Unicon has been employing sophisticated technology
to reach out to each and every investor in the financial markets like NSE, BSE, and
other derivative markets and making stock broking services highly affordable for a
common man. Its 4500 employees and 900 business offices spanning across 235 cities
in India speak volumes of its managerial acumen and progress. There are many expert
brokers and sub brokers in its wings who are helping investors to multiply their ROI.

Before answering the question ‘how to become sub broker,’ let’s first know who is a
sub broker. A sub broker is an agent of the member broker and is permitted to release
confirmation memorandums to his clients for their dealings executed by him through the
chief member broker to whom he is affiliated. An individual, a company or a partnership
firm can become a sub broker. The minimum age limit for individuals or partners/
directors of companies/firms will be 21. Similarly, all the aspiring persons should be
matriculates or have 10 + 2 years qualification at the least. They should not be declared
insolvent or bankrupt. Sub brokers should have at least 2 years of experience in the role a
partner or certified clerk or apprentice with a member broker of the Exchange or in other
related fields in capital market.

Once a sub-broker obtains certificate of registration from Securities and Exchange Board
of India (SEBI), he can commence business as a sub broker. Individuals who want
to know how to become a sub broker should take the help of Unicon as its member
brokers can guide you through the whole process. Sub brokers generally earn handsome
amounts through brokerage or commission.

UNICON Proffers Apt Investment Services to Its Clients Worldwide

In these times, when the economy is recovering from a
crisis, folks are on the lookout for an apt Depository and Investment Services provider firm,
which will cater to their unique and personalized needs. Depository proffers a protected
and suitable method to embrace securities in contrast to holding securities in paper form.

In this context, the assistance of an apt investment consulting service provider proffers an
incorporated solitary proposal making sure a safe, well organized and timely depository
procedure. When it comes to the most appropriate financial services company in India,
undoubtedly UNICON is a name which stands out in the crowd. It is an investment solution
provider, which has come out as a one stop destination for all your financial related queries and
dilemmas.

Since it conception in 2004 it has continually been proffering high quality financial solutions to
many clients worldwide. UNICON is a firm which extends resourceful services in the context
of Portfolio Management in India. It is headquartered in the national capital New Delhi and has
its corporate office in Mumbai with regional offices in Kolkata, Chennai, Hyderabad and Noida.

The one stop destination ‘UNICON’ has earned an unbeatable reputation in the financial industry
and is looking forward to escalating its esteem. The customer base of UNICON is over 200,000,
which tell tales all about the quality of work proffered by them. UNICON Group has a keen eye
for the complex financial requirements of its customers and caters equally to their short term and
long term fiscal needs through a wide ranging bunch of investment services. When it comes
to depository services, UNICON proffers excellent services such as se-materialization, re-
materialization, transfer, IPO and apt corporate actions.

“We at UNICON are always dedicated and devoted to proffer you with nothing less than
the very best in financial solutions and investment services at the most reasonable prices.
Our mission at UNICON is to create long term value by empowering individual investors
through superior financial services supported by culture based on highest level of teamwork,
efficiency and integrity. We have always envisioned to provide the most useful and ethical
Investment Solutions - guided by values driven approach to growth, client service and employee
development. Our services range from offline & online trading in equity, commodities and
currency derivatives to debt markets to corporate finance and portfolio management in
India.” Says (Name), an UNICON spokesperson.