Punjab and Sind Bank : SUBSCRIBE IPO Fairly Valued

Price Band- Rs.113-120, Face Value- Rs.10, Discount to Retailers – 5%. Issue opens on- 13th December 2010, Monday
Issue closes on- 16th December 2010, Thursday
Listing on – th 2010, Lot Size - 50 
QIB Book- 1,90,00,000 shares.
Retail Book – 1,33,00,000 shares.
Employee Reservation- 20,00,000 shares
Total No. of Shares offered- 4,00,00,000 shares.
Equity Shares outstanding prior the Issue- 18,30,56,000 Sh
Equity Shares outstanding after Issue- 22,30,56,000 Sh
Total Size of the Issue- Rs.452 Crs. - Rs. 480 Crs.

FINANCIAL DETAILS AS ON – 31st March 2010
TOTAL ASSET – Rs.56099.58 cr
TOTAL INCOME - Rs. 4326.30 cr
NET PROFIT – Rs. 501.13 cr
NETWORTH – Rs.2106.58 cr
Equity Share Capital – Rs. 183.06 cr
Preference Share Capital – Rs.200 cr
Reserves & Surplus – Rs. 1723.52 cr
Earning Per Share – Rs. 26.70/sh.
Book Value – Rs. 104.15/sh.
FINANCIAL DETAILS UPTO – 30th September 2010
TOTAL ASSET – Rs.58343.02 cr
TOTAL INCOME - Rs. 2522.95 cr
NET PROFIT – Rs. 276.38 cr
NETWORTH – Rs.2382.07 cr
Equity Share Capital – Rs. 183.06 cr
Preference Share Capital – Rs.200 cr
Reserves & Surplus – Rs. 1999.01 cr
Earning Per Share – Rs. 15.10/sh.
Book Value – Rs. 119.20/sh.

PUNJAB AND SIND BANK
Punjab and Sind Bank, began its business in 1895, is the smallest of the state-run banks in terms of business. This Bank has its traces way back to the Swadeshi movement against the British, started with a capital of Rs200,000, working capital of Rs20,000 and a staff of 9 whom it paid a total monthly salary of Rs. 320, Is coming with an IPO to offer about 4 cr shares. the price band is declared at Rs. 113 - Rs.120 which according to me fairly valued in comparision of its peers. I expect Punjab and Sind Bank should grow at above 20%, at the end of the last fiscal in March, the bank had total deposits of Rs. 52,945.09 crore and advances of Rs. 35,859.97 crore. It had 926 branches as of 31 October.Bank’s Gross NPAs were Rs. 206.15 crore as of March 31, 2010, representing 0.63% of its gross advances and 0.36% of its total assets.
State-run banks have performed well over the years in the face of competition from aggressive rivals in the private sector and from foreign banks. Government-owned banks control 70% of India’s banking industry, foreign banks just around 7% and the rest is held by private sector banks.

SOME PEER COMPARISIONs
Punjab & Sind Bank - Face Value – Rs.10 ; Book Value – Rs. 104.15 ; EPS – Rs. 26.70 ; Price/Earning – 4.23 to 4.49  ; Price/Book Value –  1.08 to 1.15

Andhra Bank - Face Value – Rs.10 ; Book Value – Rs. 90.93 ; EPS – Rs.23.49 ; Price/Earning – 6.26 ; Price/Book Value – 1.62

Bank of Maharashtra - Face Value – Rs.10 ; Book Value – Rs. 55.84 ; EPS – Rs.9.80 ; Price/Earning – 6.64 ; Price/Book Value – 1.13

Corporation Bank - Face Value – Rs.10 ; Book Value – Rs. 402.60 ; EPS – Rs.90.83 ; Price/Earning – 6.85 ; Price/Book Value – 1.55

Dena Bank - Face Value – Rs.10 ; Book Value – Rs. 83.43 ; EPS – Rs.19.91 ; Price/Earning – 6.02 ; Price/Book Value – 1.44

United Bank of India - Face Value – Rs.10 ; Book Value – Rs. 91.61 ; EPS – Rs.12.19 ; Price/Earning – 8.70 ; Price/Book Value – 1.16

Vijaya Bank - Face Value – Rs.10 ; Book Value – Rs. 61.44 ; EPS – Rs.13.22 ; Price/Earning – 7.09 ; Price/Book Value – 1.53.

SO, I give a SUBSCRIBE/BUY rating to the PUNJAB & SIND BANK with the listing gains and expect to trade near 1.40 x times the book value. Rs. 146 to Rs. 170

SUZLON on Restructuring : Merges Subsidiaries

Wind energy major Suzlon Energy on 6th Dec 2010, said that its Board of Directors has approved the acquisition of the 'Tower Business Division' of Suzlon Towers and Structures Ltd and 'Operations and Maintenance Division' of Suzlon Infrastructure Services Ltd. Both are wholly owned subsidiaries of Suzlon and the merger would be done subject to receipt of all statutory and regulatory approvals.

Shares of Suzlon Energy closed at Rs 52.25, up 1.06 per cent on the BSE.

Some of the details of this Subsidiaries - As on 31st March 2010.

SUZLON TOWER & STRUCTURE LTD.

Issued,Subscribed,Paid up Capital - Rs. 45 crs.

Reserves & Surplus - Rs. 195.61 crs.

Total Assets - Rs. 506.70 crs.

Turnover - Rs. 533.11 crs.

Profit before Tax - Rs. 31.91 crs.

Provision for Tax & Deferred tax - Rs. 10.78 crs.

Profit After Tax - Rs. 21.13 crs.

SUZLON INFRASTRUCTURE SERVICES LTD.

Issued,Subscribed,Paid up Capital - Rs. 142 crs.

Reserves & Surplus - Rs. 121.58 crs.

Total Assets - Rs. 967.36 crs.

Turnover - Rs. 1105.28 crs.

Profit before Tax - Rs. 86.95 crs.

Provision for Tax & Deffered tax - Rs. 29.89 crs.

Profit After Tax - Rs. 57.06 crs.

So with the merger the networth of Suzlon will be increased by around Rs. 317 crs, which translates into an increase in its book value by about Rs.1.82 per share. Suzlon's debt of Rs. 9252 crs. Reserves & Surplus - Rs.5892 cr.(as on 30 Sept 2010)

Thomas Cook (India) LTD ; BUY ON EVERY DECLINE - TARGET Rs.76.00

Scrip Code: 500413 / THOMASCOOK .

CMP: Rs. 60.45; Buy at Rs.55 - 60 levels .

Target: Rs. 66.00 within next 3-6 weeks ; Long term - Rs.76.00.

Market Cap: Rs. 1279.59 cr.

52 Week High / Low: Rs. 78.65 / Rs. 55.65.

Total Shares: 211677560 shares; Promoters : 163471449 shares – 77.22 % .

Total Public holding : 48206111 shares – 22.77 %.

Book Value: Rs. 11.90; Face Value : Rs. 1.00; EPS : Rs. 1.89.

Div : 37.50 %;P/E : 31.98 times; Ind P/E : 59.60; EV/EBITDA: 23.31 . Total Debt : Rs. 167.65 cr; Enterprise Value: Rs. 70.57 per share.

Total Assets : Rs. 440.11 cr.

Thomas Cook India (TCIL) is India’s largest travel and financial services company. The Company launched its Indian operation in 1881 & incorporated in 1978. Currently, it has presence in 55 cities spreading across 200 locations. On pan India level, the company has office located at Mumbai, Pune, New Delhi, Gurgaon, Chandigarh, Agra, Ahmedabad, Bangalore, Baroda, Bhubhaneshwar, Chennai, Cochin, Goa, Hyderabad, Jaipur, Jalandhar, Kolkata, Trivandrum and Vishakapatnam. With over 125 years of presence in India TCIL is focused on providing a broad spectrum of travel-related services that include foreign exchange, corporate travel, leisure travel, and insurance. The company’s overseas subsidiaries offices are located at Sri Lanka, Mauritius, Germany, France, Spain, Canada, UK, USA, Australia, Japan, Korea and China. The company has employee strength of 3000 people.

Business Division

Travel- The company provides different traveling destinations for domestic inbound/ outbound holidays. The company operates over 40 Group Inclusive Tours (GIT) spread across 5 continents.

Corporate Travel Management- The Company provides travel solutions and travel budgets of several large national and multinational companies

Foreign Exchange- The company is leading foreign exchange provider offering wide range of product and services.

Travel Insurance- Being the only travel company that has license to sell insurance co-brand travel insurance products with TATA AIG General Insurance Company.

Business Outlook

The company has entered into tie up with with cruise line operator Indian Ocean Cruises of London based Foresight Smart Ventures in order to market heritage cruise Ms Ocean Odyssey in India and Mauritius.

The company has announced the Gold Circle Programme (GCP), which is in place of nearly 3 years now and the idea behind this is to build franchise programme. The company have taken this upto 42 franchises over this period with the purpose to cover all markets within city or outside the city. The new GCP that has been appointed in Bangalore is primarily done to supplement companies coverage within the city. This is the policy that the company has followed for three years.

The company targets to settup in 120 cities, over the next two years. Which is at present 72 and hopes to achieve 100 in the year 2011 and to 120 by 2012. Essentially they are using foreign exchange business to drive the growth and the leisure business follows. So today they operate in 72 cities, the leisure operates in 42 cities which are targeted to grow by another 10 cities while growing GCP infrastructure by a larger number by during the same period.