Analyst Report : Federal Bank (Target Price :76.70, CMP :56.54 )

Federal Bank

Federal Bank, the erstwhile Travancore Federal Bank, is medium sized Indian commercial bank in the private sector headquartered at Aluva, Kerala. The Bank was incorporated on April 23, 1931 under the Travancore Companies Regulation, 1916. Late K. P. Hormis took up the reigns in 1945 and built the bank a nationwide institution. Later it scheduled commercial bank under the Second Schedule of Reserve Bank of India Act, 1934 in July 20, 1970.

Economic Report : Gold and Indian Economy

 The Indian economy is the seventh largest economy in the world by nominal GDP ($2.582 trillion Nominal, October 2015) and the third largest by PPP ($8.427 trillion PPP, October 2015).

India is running a trade deficit. India imports more than what it exports. India is the largest consumer of gold in the world. India accounts for more than 30% of the global gold market. The amount of production of gold in India is minimal and the need is met by imports. Gold constitutes 12.50% of the total imports of India. India imports 26.10% of total world production of gold.

Analysis Report: Titan Company Ltd. (BUY; Estimated Price: Rs. 450)

Introduction of Company

Tata Company Limited, established in the year 1984, is a joint venture between TATA Group and Tamil Nadu Industrial Development Corporation (TIDCO). It is the world’s fifth largest watch manufacturer. The company is divided in four main divisions- watches, jewellery, eyewear and precision engineering; in which jewellery accounts for its major chunk of revenue i.e. 79%. It has recently entered into the business of fragrances and accessories. Titan has four subsidiaries as on 31^st March 2015, namely Titan Time Products Ltd., Favre Leuba AG, Titan Watch Company Limited and Titan Engineering and Automation Limited. The company has a culture of innovation and they carry it through Innovation Bazaar, Interweave, Tata Innoverse, Innovation Centre and Titan Innovation Hub. Titan is also selected as Best Employer for "National Award for the Empowerment of Persons with Disabilities - 2014" by Government of India.

Analyst Report : NESCO Ltd. (BUY; Estimated Price: Rs. 1842)

Introduction:

NESCO was established in 1939 as a manufacturer of tools and surface preparation machines which are supplied to various industries in India. It started as an engineering firm but slowly diversified into two other segments, namely incubator (exhibition hall) and real estate (renting and leasing of offices). As its core operation was engineering products, the company had plants at multiple locations in Mumbai but soon it consolidated all the plants in a single 70 acre land brought in Goregaon on the Mumbai-Goregaon Express Highway.

Figure 1: The sectors in which NESCO operates

Quarter-I (FY 2015-16) Analysis Report: Atul Auto Limited (BUY; Estimated Price: Rs. 495)

Atul Auto Limited, which began its operations in 1992 at Rajkot, Gujarat, manufactures 3 wheeler auto rickshaws and their spare parts. It gets major competition from Bajaj Auto and Piaggio. The company recently expanded its production capacity from 48,000 units to 60,000 units at its Rajkot plant in July 2015. In the meanwhile, it has also been working on its Greenfield expansion in Ahmedabad. The company expects to be able to set up this facility by FY2016-17 or early FY2017-18. The capacity would be 60,000, which is likely to come up in two stages; 30,000 plus 30,000. The capacity utilized in FY 2014-15 was 86.6% with 41,598 units sold.