Latest Pick from Smart Profit

BUY Neyveli Lignite Corporation Limited (NLC) is a government-owned
lignite mining Indian company, which is wholly owned by the Union
Government (49%) and administered via coal ministry.
The company runs the biggest open-pit lignite mines in India and mines
around 24 million tonnes of lignite annually for fuel, with an
installed capacity of 2490 MW of electricity per annum.
NLC now elaborated its project to Rajasthan also in mining as well as
thermal stations, 3 big mines also supplies a huge amount of sweet
water to Chennai.
Neyveli Lignite is an open-cast mechanized lignite mine. The company
mines 24 million tons of lignite annually and generates power with
installed capacity of 2490 megawatts of power. The Company has 50
percent joint venture with Tamil Nadu Electricity Board. Recently, the
company announced its plans to invest about $8.2 billion on power
generation and mining capacity augmentation by 2017. The plan also
includes development of power projects using other fuel feed. Of the
proposed investment, $2.04 billion has already been spent on ongoing
projects.
Strong expansion plans and with regard to aggressive expansion &
diversification plans to explore coal-based, wind and solar power
generation projects will add on strength to the cashbook.

BUY Syndicate Bank was established in 1925 spanning over 80 years of
pioneering expertise, the Bank has created for itself a solid customer
base comprising customers of two or three generations.

Syndicate Bank a Public sector lender reported a robust jump of 24.52
per cent in its net profit at Rs 256.19 crore for the third quarter
ended December 31, 2010.
It had a net profit of Rs 205.74 crore during the same period of last
fiscal.

Inflationary expectations & tight liquidity adversely impacted the NIM
(Net Interest Margin) which leads to fall in this stock price. The
concern negative points appears to be unfreeze & correction in the
stock overdone. Syndicate loan books expected to grow by 20%. Thus the
stock looks attractive investment opportunity.

Since its 52 week high of Rs 164 has been declining in a well defined
channel lows and highs. At its current low of Rs 102, the stock has
underperformed Sensex & Bankex & the close to its book level.

We think the stock is cheap at 1.4x estimated FY12 book value. Thus
studying all the aspect we recommend a strong BUY with the target 195


BUY Lupin Headquartered in Mumbai, India, Lupin Limited today is an
innovation led transnational pharmaceutical company producing a wide
range of quality, affordable generic and branded formulations and APIs
for over 70 countries in the world. Lupin remains amongst the prolific
R& D spenders in the industry which we believe bodes well for its
growth.

Lupin reported net sales for the Q3FY2011 increased by 16.9% to Rs
14,672 million with domestic formulation business continued to show
strong growth and on back of traction across Europe, South Africa and
API segments.

Intact growth in FY 2011-12 in the sector due to 1)Visibility increase
in launches in US. 2)OCs launch from Sep 2012E.3) Minimal threat of
generic competition to Suprax.

We believe the recent fall in stock is a good opportunity point as
long term drivers are intact.
We recommend 'BUY' on the stock with a target price of Rs510 valuing
it at 20x FY2012E earnings.


BUY AREVA T&D India Ltd, the Indian subsidiary of AREVA France SA ,
engages in the design and manufacture of equipment, systems, and
services for transmission and distribution of electricity in India.

Areva T&D has posted a net profit after tax jump of 181.03% to Rs.
62.95 crore on 39.54% increase in net sales to Rs. 1047.85 crore in Q3
September 2010 over Q3 September 2009.

Eight new factories were built at three locations: Vadodora in
Gujarat, and Hosur and Padappai in Chennai in Tamilnadu.

The comply of Areva T&D India's business at global level by the
Consortium of Alstom-Schneider continues to fortify on the stock.

Although the signs of recovery are emerging, the stock is currently
trading at lower valuation that contradict the fundamental.

Building on the strong operating performance with relatively low
interest and depreciation cost as proportion to sales and lower tax
incidence , we expect company to register CAGR of 13.5% respectively.
We expect the stock perform dominant in earning with a target price of
440


BUY FIRSTSOURCE SOLUTION LTD formerly known as ICICI OneSource, was
incorporated in 2001.
Firstsource Solutions Limited provides a range of business process
outsourcing services.
It offers business process management services to the banking,
financial services and insurance (BFSI); telecommunications and media;
and healthcare industries. Firstsource has a "rightshore" delivery
model with operations in India, U.S., UK and Philippines.

INVESTMENT VIEW :-
Leadership position in the healthcare industry
About 40% of the revenue comes from its healthcare vertical catering
mainly to US markets

Stable relationships with existing clients
The Company works with more than 1000 clients. 7 of the top 10 clients
have grown during the quarter.

Foreign Exchange Hedges
Outstanding FX hedge sat $ 31million and £ 35million for USD and GBP
respectively.

Employee Strength
24,909 employe sesason September 30,2010.

FSL expects Strong performance both on revenues and profitability. We
recommend a Buy on FSL at CMP 19.30 with a target price of 45 .


SELL BAJAJ AUTO : Bajaj Auto Ltd, the 2nd largest manufacturer of two-
wheelers in India, reported less growth compared to its peers and its
production constrains, decreasing brand image , market acceptance,
detoriating quality & inability to achieve target sale stock looks
struggling. Bajaj is losing its ground by decreasing market share. 4
years back, it enjoyed market share of more than 35 % in India and
currently its market share is mere 17.5 % and further on a fall. Bajaj
Auto recorded a fall of 25% in its total sales in December 2010
compare to October 2010. This is further expected to fall.
Strong players like Hero Honda, Honda, TVS, Suzuki and newly
introduced Mahindra in two wheelers and Piaggio, TVS, Mahindra in
three wheelers are giving tough competition to Bajaj. The split of
Hero & Honda will negatively impact Bajaj. Hero is expanding in
exports as well. Fierce competition, OPM pressure , increasing input
cost and interest rate are weakening Bajaj Auto. Thus we recommend a
Strong SELL on Bajaj Auto at 1300 targeting to half of its current
price within 6-9 months.


FOR FUTHER DETAILS CONTACT:-

SUMAN JAIN
(CEO)
+919820041126
Email: sumanjain@smartprofit.in

ANKITA JAIN
(Director)
+919819854402
Email: ankita@smartprofit.in

DIPAK MANGELA
(Research Analyst)
+919820260291
Email: dipak.mangela@smartprofit.in

MANSINGH RAI
(Customer Care Executive)
+919320907684
Email: mansingh.rai@smartprofit.in

SHAILESH GOWDA
(Customer Care Executive)
+919967394114
Email: shailesh.gowda@smartprofit.in

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