Dena Bank 10-15% Upside Possible in 3 Months

Investment rationale

Branch distribution in rich belts helps CASA accumulation

For FY09, CASA for the bank stood at 36%. This is still one of the best in the small PSU banking universe. The major reason for such a consistently high CASA ratio is that majority of its branches are located in the western region especially in Gujarat and Maharashtra with a tally of 480 and 242 branches, respectively. Out of 1184 branches in FY09, these branches are CASA rich by nature.

Value buy even after recent run up

Let us consider a stress case scenario where all the GNPA for the bank turns bad. Assuming the GNPA to be at 2.6% for FY10E and 2.2% for FY11E at Rs 890 crore and Rs 953 crore, respectively, the adjusted net worth of the bank stands at Rs 2521 crore for FY11E, resulting in ABV of Rs 65 per share after considering a dilution in FY10E. We believe the stock can command 0.9x ABV (stress case) of Rs 65. We value the stock at Rs 58.5 per share.

Business momentum to stay steady, recapitalization expected in FY10E

The total business for the bank crossed Rs 72000 crore for FY09. The bank expects total business of around Rs 125,000 crore, by FY12E owing to its branch expansion plans and by enhancing efficiencies in its existing network. However, we feel the economic slowdown will delay the plans by a couple of years. We expect the total business to cross Rs 100000 crore in FY11E. We have considered recapitalization of Rs 500 crore from the GoI, which currently
owns 51% in the bank. This will lead to future balance sheet growth in FY10E.

Hospitality Shares go down after terrorist attacks

After terrorist attacks on 26th Nov evening on two iconic south Mumbai hotels in our financial capital Mumbai, three hospitality shares slumped by 4% to 11%.

Indian Hotels Company, EIH and Hotel Leela Ventures slipped by 3.89% to 11.46%

Terrorists armed with grenades and rifles stormed into the Taj Mahal Palace and Oberoi hotel late on Wednesday, 26 November 2008.

Indian Hotels Company operates Taj Group of Hotels and EIH operates Oberoi Group of Hotels.

Mumbai's five star hotels, which have been already hit by the ongoing economic slowdown, will face even more downturn after Wednesday's (26 November 2008) terror attacks in an otherwise busy season that begins in October every year.

Print Calendar of Your Choice - with Customization

I know it's something different that usual. Just like you, I was eager to know what exactly this company is all about. Vistaprint name gives me a hint but when I browsed through that website, I came up with many ideas for special moments. It's going to be a very special gift for someone you love.

Let me tell you what I gonna do. I will collect 13 photos of my wife, add them one by one in the virtual calendar at Vistaprint and then order there to print calendar. Can you imagine, I would have a personlized special calendar of our own photos for few bucks.

It's such a beautiful gift, it would be much more valuable than even a diamond ring for your wife. Believe me! If you would like variety, you can print photo desk calendars, wall calendars, poster calendars. It's not about only calendars but they have many more interesting products like invitation cards, rubber stamps, along with regular business cards.

Basically it seems to be a one stop shop for all your printing needs and that's also online. No need to go to the market, order and wait for it. Rather it's better do it quick online, customize the order and just pay off - and your order would come to you as per your chosen delivery time. As simple as 1-2-3!

Software Exporter Companies up on Friday on Weak Rupee

Four software exporters were up by 3% to 6% as the rupee was trading near its record low against the dollar, I believe it was somewhere around Rs 50.20 compared to one USD.

Four major software exporters Infosys Technologies, Wipro, TCS and Satyam Computer were up by 3-6% as rupee traded at pretty low . It had hit a record low of 50.60 per dollar yesterday though.

Weak rupee favors the Indian software exporters as they earn more than half of their revenue in dollar terms. But I am seeing that the Rupee would appeciate on longer term keeping mind that finance minister of India reiterated about strength in Indian economy compared to US economy.

Shop but Still Save Money Using ACDSee promo code Coupons

What a timing for market? Everyone has invested their money, no one can withdraw the investment. Reason - the current value is far less than invested value. So if I want to buy something today, I will have to raise the money from somewhere. There are no way in this credit crunch situation.

As festival season is coming in a month, we still need to do our rituals and that include gifting our loves ones, buying some stuff for ourselves and our family. All this is kind of mandatory, but we need to still make sure that we are not spending a lot of money on that in this credit crunch situation. The best way to deal with such situation is to save money.

Most of us buy the stuff online for various reasons, it's cheap, it's convenience, it's easy but do you know that we can save lot of money by buying the things online using the coupons? These coupons are mostly available online only and can be used while shopping through the cart and pay by credit card or Paypal.

I am sure many of you don't know this source, so I would like to share with you that you can such coupons at ACDSee promo code website. This would give you some coupons that can be used on the manufacturer's website to get substantial discount.

Realty Shares Down on Concerns of Falling Demand of Homes and Credit Cash Crunch

Today realty shares crashed today on concerns of falling home demands and cash crunch in India. These are top six real estate companies in India that are falling like there is no tomorrow. Unitech, DLF, Omaxe, Housing Development & Infrastructure Limited (HDIL), Ansal Properties, and Sobha Developers were down by 3.91% to 13.09%.

The news in the market is, DLF who is India's biggest developer by market capitalization, may even defer the development projects.

Real Estate Developers' Associations of India has requested for a reduction in prices. Some of the developers are already reducing the prices across India, CREDAI is requesting all its member companies (around 3500 developer companies) to do the same.

Share Market extends losses of 15% in five trading sessions

Global and domestic worries are hammering the Indian markets like anything, today when I saw that the market tanked again, it's almost 15% loss since last 5 days.

The major reason for down market is weakening domestic and world economy, moreover the ongoing state elections are addition to already going problems. Could you see the fall in US index futures and weak European shares, those are pulling the domestic bourses lower for the fifth day in a row. The BSE 30-share Sensex lost 353 points, nothing more but another 20K loss for me today.

Even if finance minister P Chidambaram stated that the government will take steps to stimulate the economy, that only could provide only a temporary respite as a recovery from lower level in early trade from an initial deep.

Reliance Surges and takes the Sensex along with

RIL shares today surged ahead taking the share market along with and passed the Sensex psychological barrier of 10000 and the S&P CNX Nifty raced past the psychological important 3000 mark. Reliance company is a solid foundation company and has been part of "A" group shares. It will be always safe to invest in these shares, no matter where the market goes. Remember, whenever market comes up, Reliance shares come up very fast, giving back all the losses and additional gains.

Reliance group has many companies under it's umbrella, but I invest in Reliance Industries, Reliance Power, Reliance Petroleum majorly. Anil Ambani's Reliance communication is also on my radar all time.

What companies you prefer to invest in from Reliance group?