...Friday 29 June 2007 Change of recommendation Reliance Industries Earnings to provide a reality check We downgrade RIL to Sell with a target price of Rs1,300. We believe consensus valuation of its E&P assets is too aggressive. The stock also looks expensive on earnings multiples, given our cautious view on the commodity cycles and belief in rupee appreciation. Key forecasts FY05A Revenue (Rsm) EBITDA (Rsm) Reported net profit (Rsm) Normalised net profit (Rsm)¹ Normalised EPS (Rs) Dividend per share (Rs) Dividend yield (%) Normalised PE (x) EV/EBITDA (x) Price/book value (x) ROIC (%) 1. Post-goodwill amortisation and pre-exceptional items Accounting Standard: Local GAAP Source: Company data, ABN AMRO forecasts Sell n/a Neutral (from Hold) Absolute performance Short term (0-60 days) Market relative to region Integrated Oil & Gas India Price Rs1700.00 FY06A 812113 144050 96046.9 96046.9 78.5 10.0 0.59 21.6 17.6 6.60 13.0 FY07F 1053630 182100 115113 115113 94.1 11.0& 0.65 18.1 14.6 4.29 17.5 FY08F 982038 FY09F 927646 660513 126574 75716.4 75716.4 61.8 7.50 0.44 27.5 19.6 5.18 9.74 Target price 181809& 210725% 122300% 137078% 122300 100.0% 12.0 0.71 17.0& 15.0 3.48 10.6 137078 106.8% 14.0% 0.82 15.9& 12.3 2.54 10.3 Rs1300.00 (from Rs1250.00) Market capitalisation Rs2.37t (US$57.99bn) Avg (12mth) daily turnover Rs1376.07m (US$31.05m) Reuters Bloomberg RELI.BO RIL IN year to Mar, fully diluted Limited earnings growth We estimate...
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...Summer Internship Project Report Understanding the Business Dynamics of four major Indian IT companies, Comparison of their Strategies and Equity Forecasting of a Company Submitted to Mr VinitBolinjkar, Head, Equity Research, Ventura Securities Ltd Dr. Sangeeta Wats 8 June 2013 Prepared by Vaibhav Jha (Roll No A028) Intern at Ventura Securities Ltd, Mumbai MBA Capital Markets 2012-14 batch Narsee Monjee Institute of Management Studies, Mumbai Preface The size of Indian IT Industry is $100 billion. The pace with which different IT companies have been growing vary to a great extent. Even in terms of future guidance, one company hovers around 6-10% vis-a-vis another at 17%. Volatility has seeped into this industry. It is becoming increasingly difficult for the investors to invest in any of the companies, thanks to the sinusoidal growth of some of the bellwether IT companies. An investor needs to do an in depth analysis of the business model being followed by various companies. I need to look into their target geographies, service lines and industries. Scrutinising these parameters along with the valuation of the respective stocks will give a better idea about the future prospect of these companies. In this research, I have taken top four Indian IT companies- TCS, Infosys, Wipro and HCL. An in-depth analysis of each of the companies is done. I have looked into various domains of the companies. IT industry has many service lines- IT Services, Consulting, Products...
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...Executive Summary Analyst Name: Tommie Anthony Henderson Company: DeVry Education Group Inc. (DV) Price on report date: $35.73 on March 20, 2015 Forecast Horizon: 1 year Recommendations: BUY Target forecasted price: $42.19 Highlights: * DeVry provides services educational development worldwide. * DeVry Educational Group operates three segments: Medical and Healthcare; International and Professional Educational; and Business, Technology and Management. * DeVry saw strong growth during the worldwide recession. * Company has strategically reduced its operating cost in segments that have seen either small improvement or losses in enrollment. * Company has strategically transitioned to support its Medical and Healthcare segments which has seen strong growth potential. * Risk factors include enrollment and public relations as the company has endured numerous class action lawsuits resulting from student dissatisfaction with curriculum content. Summary of Analysis: * Market Capitalization: $2.2 Billion on March 20, 2015 * Cash: 369.98M * Free Cash: $187.53M based on 4th Quarter of 2014 reported data * Last 12 months revenue: $1.92B * Operating Cash Flow: 266.89M * Dividends: N/A Qualitative Analysis Company Profile: What services and products do they sell and/or manufacture? DeVry Education Group is a corporation based in Downers Grove, Illinois. It was founded in 1931and it presently operates a number of...
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...The Fund @ Sprott Equity Research Lannett Buy, Current: $68.3, Target: $80.83 March , 18, 2015 5-Year Performance Brian Baranowsky $60 BCom Candidate 2019 Finance $50 Sector Analyst $40 5 Price per Share 4 4 3 $30 3 2 $20 2 1 $10 1 Daily Volume Stock Price Aug-14 Feb-14 Aug-13 Feb-13 Aug-12 Feb-12 Aug-11 Feb-11 Aug-10 Feb-10 0 Aug-09 $0 Feb-09 Brian.baranowsky@gmail.com http://fund.ssb.carleton.ca 5 Current Target Price Source: Bloomberg Investment Thesis Past Exponential Growth Expected to Continue Lannett has expanded at a CAGR of 22% over the last 12 years with an exponential increase in FY 2014 where revenue growth amounted to 81.2% YOY. Growth continues to be a priority for management going forward as they have expanded on their generic pharma product line through product development, formed strategic partnerships, and entered into profitable new markets as patents expired on existing branded drugs. Favorable capital structure and huge increase in cash balance allows company to pursue acquisitions or reinvest back into business. Macro economic trends such as aging population, increased access to healthcare and increased healthcare spending stand to increase revenues. High barriers to entry, High Margins Lannetts wholly owned subsidiary Cody Labs is one of only 7 companies in the United States that is licensed by the DEA to import raw commercial poppy straw for conversion into opioid based active pharmaceutical ingredients (API). This...
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...Result Update November 14, 2011 Rating matrix Rating Target Target Period Potential Upside : : : : Buy | 32 24 months 29% GMR Infrastructure (GMRINF) | 25 WHAT’S CHANGED… PRICE TARGET........................................................................... Changed from | 35 to | 32 FY12E 7652.8 1820.4 -178.9 FY13E 9689.6 2807.6 168.5 Key Financials (| Crore) Net Sales EBITDA Adj Net Profit FY10 4566.5 1364.3 158.4 FY11 5773.8 1555.5 -131.0 EPS (FY12E).............................................................................. Changed from |0.1 to |-0.5 EPS (FY13E)........................................................................................................Unchanged RATING...............................................................................................................Unchanged Net losses lower than expected… GMR Infrastructure’s (GMR) Q2FY12 net losses were lower than expected largely on account of better-than-expected revenues and margin in the other segment (investment income, project management fees & charter rental income). During the quarter, GMR agreed to sell a 30% stake in GMR Energy (Singapore) implying deal value of ~S$50 million and contributing |1.7/share in our SOTP valuation. We maintain BUY. Q2FY12 losses lower than expected… GMR’s net sales grew 48.3% in Q2FY12 mainly on account of consolidation of the Male Airport (| 225 crore). The net losses came lower at | 62.5 crore vs. our expectation of | 91.1 crore largely...
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...Analysis ACC 400 Week 3 Individual Assignments from Readings ACC 400 Week 3 Learning Team Assignment E11-1 ACC 400 Week 4 DQ 1 ACC 400 Week 4 DQ 2 ACC 400 Week 4 DQ 3 ACC 400 Week 4 LTA Interpreting Financial Statements Report ACC 400 Week 4 Power Point Presentation ACC 400 Week 5 Assignments BYP13-7 23.10 and 23.12 ACC 400 Week 5 DQ 1 ACC 400 Week 5 DQ 2 ACC 400 Week 5 Final Exam ACC 400 Week 5 Individual Assignment Debt versus Equity Financing Paper ACC 400 ENTIRE COURSE ACC 400 Week 1 DQ 1 ACC 400 Week 1 DQ 2 ACC 400 Week 1 DQ 3 ACC 400 Week 1 Individual Current and Noncurrent Asset Paper ACC 400 Week 2 DQ 1 ACC 400 Week 2 DQ 2 ACC 400 Week 2 DQ 3 ACC 400 Week 2 Individual Questions from the readings ACC 400 Week 2 LTA Assignments from Readings ACC 400 Week 3 DQ 1 ACC 400 Week 3 DQ 2 Horizontal Analysis ACC 400 Week 3 Individual Assignments from Readings ACC 400 Week 3 Learning Team Assignment E11-1 ACC 400 Week 4 DQ 1 ACC 400 Week 4 DQ 2 ACC 400 Week 4 DQ 3 ACC 400 Week 4 LTA Interpreting Financial Statements Report ACC 400 Week 4 Power Point Presentation ACC 400 Week 5 Assignments BYP13-7 23.10 and 23.12 ACC 400 Week 5 DQ 1 ACC 400 Week 5 DQ 2 ACC 400 Week 5 Final Exam ACC 400 Week 5 Individual Assignment Debt versus Equity Financing...
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...Running Head: Financing Alternatives Lester Electronics Financing Alternative Benchmarking for Bernard Lester University of Phoenix MBA – 540 Introduction In this paper will compare and contrast issues that various companies had experienced in past mergers to the issues presented in the Lester Electronic Scenario. The companies benchmarked are Disney-Pixar, Lucent-Alcatel, Monaco Coach Corporation, SMC Corporation, Infosmart-Cyber Merchants, Fidelity Bank of Nassau, Royal Bank of Canada, and AT&T. One of the issues presented in the scenario is that LEI was preparing to conduct a joint venture with Shang-wa when Transnational Electronics made an offer to acquire Shang-wa. The main issue is that if Shang-wa is acquired by TEC, the joint venture between Shang-wa and LEI will not be possible. LEI intends to remain as the company of choice but this might not be possible if TEC acquires Shang-wa. Some of the concepts that Team A will evaluate considering the LEI scenario issues are: capital management strategies to maximize shareholder wealth, economic exposure, the challenges of cross-border growth strategies, working capital management, and internal and external growth strategies, and cultural barriers, while identify the best financing alternative for the merger. Companies Benchmarked Alcatel-Lucent – Yolanda Smothers Alcatel-Lucent provides telecommunications...
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...Unit 2 Term Paper Gary M. Kidd Kaplan University Author Note Pro. Young-White, I’m sorry the term paper is a day late, but I spent most of 3 September at a scheduled medical procedure to refill the pain pump implanted in my spine with Dilaudid. It kept me knocked-out most of the day. Please remember that I’m given extra time on assignments via the Kaplan University office of student disabilities. Abstract This term paper for unit two review three articles, Ethics Consultation in United States Hospitals This term paper also defines 8 financial terms. Keywords: Balance sheet, Shareholder Equity, EBITDA, EBITDAM, Financial Ethics, Financial Benchmarking, Financial Trend Analysis, and Ratio Analysis. Unit 2 Term Paper Business ethics is the appropriate business guidelines and customs regarding debatable issues, like the way a CEO runs his company, illegal stock trading, corruption, business social and monetary obligations. The government’s authorities frequently enforce business ethics, still there are times when businesses alone will use a straightforward structure that organizations can abide by so that they simply may benefit the public interest (investopedia.com, 2013). Article Review The first article chosen for this assignment, is Betsy Gallup’s article Ethics Are an Important Part of Running a Health-Care Facility, and she explains ethics as having three components: independence, integrity and objectivity (2009)...
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...Formalities – Perfect/Imperfect Trust Introduction The question in this case refers to the creation of a trust, i.e. the formalities that are required. In the case of Serena, she has created a trust that holds the property in trust for Alice for life and then the remainder goes to Alice’s children. On the death of Serena, there is a valid will where Alice gets all of the property and there is no interest for Alice’s children. Therefore, the following advice is going to identify a trust is in place, which will ensure that the property transfers to the children. The Creation of a trust The case of Milroy v Lord identifies a perfect trust, which includes; 1) a deed of the trust; and 2) transfer of the property following all formalities . Therefore, in the case of the trust created by Serena, both the property “Hillside” and the Jane Austin books have the capability of being part of a perfect trust. However, in the case of the land there are additional formalities, which will be discussed later. At this point there is a perfect trust that related to the books, because this is a case of a perfect trust, because there is both declaration and transfer of the books to the trustees . The share certificate and cheque are not in the deed documents, but have been transferred to the trustee with the declaration “to be added to the trust”. This is not a full deed, but applying the case of Milroy v Lord it is a declaration plus transfer of the property, which means that it has a capability...
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...Evidence from Canadian and U.S. Firms Kelly E. Carter SYNOPSIS: I examine Sarbanes-Oxley’s (SOX) effect on capital structure. I find that SOX is associated with higher long-term debt ratios, as firms listed in the U.S. raise their long-term debt ratios by 2 to 3 percentage points. This finding is consistent with the idea that, although the reduction in information asymmetry associated with SOX could prompt managers to increase equity financing, debt is still safer and less costly than equity in the SOX era. Further analysis shows that the increase in debt occurs in the two quarters prior to SOX, suggesting that firms anticipate a higher cost of debt after SOX and acquire debt while it is relatively cheap. Also, firms that heavily (lightly) manage earnings prior to SOX use less (more) debt after SOX. This result is consistent with the view that firms that aggressively manage earnings before SOX reveal intrinsically weaker earnings after SOX, casting doubt on those firms’ ability to repay debt and relegating those firms to issue equity for financing purposes. Keywords: capital structure; earnings management; debt ratio; Sarbanes-Oxley. JEL Classifications: G32; G38. Data Availability: Data available upon request. Kelly E. Carter is an Assistant Professor at Morgan State University. I particularly thank Terry Shevlin (co-editor) and an anonymous referee for their detailed, excellent comments, which greatly improved this paper. I also thank Alexander Butler, Laura...
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...MANDATES Piec vs. Caisse d’economie polonaise (p. 59) 01-Jul-92 Date of Bad Boy’s forged mandate 15-May-92 Bad Boy gets mandate from Grandma 03-Jul-92 Grandma dies 11-Aug-92 Bad Boy gives forged mandate to bank Bad Boy comes to Canada 18-Aug-92 Bad Boy withdraws $26k payable too cash Grandma = Stephania Wojcicka Bad Boy = nephew Tadeusz Wojcicki Niece (Margaret Wojcicka) is executor of will Facts | * Three mandates: 1. Gma goes on extended trip, gives power of attorney for banking matters to Bad Boy 2. Niece has mandate as executor of the will (mandate only kicks in when Gma dies) 3. Bank has mandate for Gma’s finances * Grandma’s bank account summary: $5 membership, $1k term deposit, $26k term deposit (can’t take out until 26-Oct-92 or wil receive no interest) * Bank didn’t k6now Gma was dead when Bad Boy removed funds | Question | 1. Was bank guilty of not [2138] exercising prudence and diligence for its [2130] mandate? 2. Does the valid mandate authorize the bank to give the term deposits (no) 3. What effect should be given to the letter of july 1st (none) 4. Did the bank owe obligation to grandma, and not rely on the letter (yes, 2138) | Ratio | 1. Argument: Bank is a special type of agent, v. strong fiduciary duties; if they’ve been defrauded they are 100% liable. Answer: Bank should have been more [2138] prudent and diligent; it wasn’t prudent cash out the account, and the bank wasn’t diligent in its duty...
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...Contract Formation Author: Jason Dorman Business Law Professor Riggs 11-24-2013 A contract must have certain elements to be considered a contract. However, there are also elements that exist that will negate a contract as well. Fraud, undue influence and duress are all elements that will negate a contract. When a contract is breached or negated one party can collect damages or seek equitable remedies. The common law doctrine of election of remedies prevents individuals from taking advantage of the system. These elements are what an individual would not want to deal in any business situation. There are also elements in place to prevent a party from double recovery and this is called the common law doctrine of election of remedies. What we can learn from contracts is that neither side will deceive the other. What is fraud and how does it affect a contract? Fraud is an intentional act by one party to deceive another. “Fraud prevents a mutual agreement to a contract because one party intentionally deceives another as to the nature and the consequences of a contract.” [legal-dictionary.thefreedictionary.com] When each party involved in the contract states their terms. The terms must be factual and any misrepresentation of the truth can void the contract. However, there are situations where an individual’s intentions are to get over on the other party. This is why it is important to read the contract before signing it. What is undue influence? “Undue...
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...QUESTION “There must be somebody in whose favour the court can decree performance” Discuss the principle enunciated in the above statement and the exceptions thereof with the aid of appropriate case law “There must be somebody in whose favour the court can decree performance” INTRODUCTION In order for a trust to be valid, there needs to be an identifiable beneficiary who can either be an individual or a company . If for instance there is no beneficiary, and consequently the trust is for the achievement of some abstract purpose then the trust is to be considered as void. In the words of Lord Grant MR in the case of Morice v. Bishop of Durham : “There can be no trust, over the exercise of which this court will not assume control... if there can be clear, but for uncertain objects, the property… is indisposed of… Every… [Non-charitable] trust must have a definite object. There must be somebody in whose favour the court can decree performance. The rationale of the principle is to ensure the courts ability to administer the trust. Moreover in the case of Re Endacott it was said, in relation to the beneficiary principle, that ‘no principle has greater sanction and authority’ in the law of trust other that requiring the existence of a beneficiary. It is essential for validity. For instance in the case of Re Astor , a trust for the establishment , maintenance and improvement of good understanding, sympathy, and co-operation between nations was...
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...Mitigation of Damages: In most situations, when a breach of contract occurs, the non-breaching party has a duty to take whatever action is reasonable to minimize the damages caused by the breach. For example, in most instances, people who are fired by their employer, regardless of the reason, have a duty to find a new job. Likewise, a thwarted house buyer has a duty to take reasonable steps to locate another house. Liquidated Damages: Many contracts contain provisions specifying a sum certain of money to be paid by the breaching party in the event that he fails to perform as required by the contract. Generally speaking, the liquidated damages are based on a reasonable estimate of the value of the promised performance. Penalties: By contrast, a penalty provision specifies a sum certain of money, bearing no reasonable relationship to the value of performance, to be paid by the breaching party in the event of default or breach. Penalty provisions are rarely enforceable. EQUITABLE REMEDIES In addition to the various types of money damages, there are several equitable (i.e., non-damage) remedies available. Rescission: Canceling a contract and returning the parties to their pre-contract position. Restitution: Returning goods, property, or money previously transferred in order to restore the non-breaching party to his pre-contract position. Specific Performance: Requiring the breaching party to perform exactly as called for in the contract...
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...Restitution an old concept Restitution v Compensation (most cases) i.e.: remedy of compensation Unjust enrichment has 4 main elements (confirmed in Banque Financiere) **** sets out the structure. i) defendant’s enrichment (money is very clearly a benefit to you) (can spend it, can use it) ii) at the claimant’s expense? (did the money come from the bank?) transfer of value from the C or substraction from C … didn’t lose money, but lost time and expertise i.e.: repairing a table iii) was the enrichment unjust? (unjust factors: i.e.: could be a mistake, failure of consideration benefit has passed, but had failed to provide consideration., exploitation) iv) Are there any valid defences? We don’t want the defendant to suffer as well. The claimant doesn’t necessarily gain back everything. (CHANGE OF POSITION THE DEFENDANT RELIED ON THE ENRICHMENT). Reliance, detrimental reliance, links with estoppel. i.e.: textbook, nightout, books. Instead of buying new textbooks, could have bought 2nd hand. Instead of spending the nightout, could have paid individually. The court only look at the gain you still HAVE. They might take away your books, laptop (require to sell off the laptop) depends on REASONABLENESS /SENSIBILITY. So, i.e.: if you spend on HOLIDAY, on other things, i.e.: spend on nightout dinner, the court cant take back anything! Chase Manhanttan. made 2 payments, only should made 1. After being made, the bank went bankrupt, found a constructive trust...
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