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Natural Hydro Power Corporation, an entity of Government of India, is
country's largest hydro power producer.

NHPC is currently having an installed capacity of more than 5,300 MW
and has a cash surplus of over Rs 4,000 crore.

It raked in a profit of Rs 2,166.67 crore in FY 2011

The state-run major is engaged in the construction of 10 projects at
various locations in the country, going to have an additional capacity
of 4,502 MW.

It plans to increase the capacity to over 10,000 MW by end of 2012.

The coal price is expected to rise by 2012, which will result in
increase in power price by 20%. This will further boost the profit
margin of NHPC to a large extent.

Spanning on Government's increasing emphasis on hydro power and NHPC's
strong hold, we recommend a BUY on NHPC at CMP 25 to target 40 in 6
months, 75 in 18 months.

TATA TELESERVICES LTD
CMP: 20
Target: 30 in 3 months

Tata Teleservices Limited spearheads the Tata Group's presence in the
telecom sector. The Tata Group includes over 90 companies, over
395,000 employees worldwide and more than 3.5 million shareholders.
It launched mobile operations in January 2005 under the brand name
Tata Indicom and today enjoys a pan-India presence through existing
operations in all of India's 22 telecom Circles.

Tata Teleservices Limited also has a significant presence in the GSM
space, through its joint venture with NTT DOCOMO of Japan, and offers
differentiated products and services under the Tata DOCOMO brand name.

Today, Tata Teleservices Ltd, along with Tata Teleservices
(Maharashtra) Ltd, serves over 85 million customers in more than
450,000 towns and villages across the country.

Tata Teleservices saw a whooping rise in its sale rising by 39% to Rs.
3128.24 crore in FY 11.
The company, by improving its revenue model and deeper market
penetration, turned into a profit making one, by giving Net profit of
Rs 49.90 crore in FY11 vs net loss Rs 298 crore in FY10.
A per the latest news by telecom tribunal TDSAT, Tata Teleservices is
entitled 2G GSM spectrum in Delhi on priority basis compare to its
peers Idea, Unitech and Videocon.

Going forward we expect the company to maintain quarterly addition of
0.5 million subscriber in FY12, which signifies an addition of 20
million subscribers in a year.

We expect the upgrade to 3G to boost average revenue per user, premium
services may take time to pick up in a price sensitive market such as
India. Increase usage of broadband service on photon device driving
key metrics upwards. The overall performance of the company looks
encouraging.

We estimate the top line to grow at 6.1 % CAGR over FY11-13E. At CMP
of 19 we have a BUY rating on the stock with the target price of 30.

Disclaimer: - This document has been prepared by Smart Profit (Stock &
Derivatives consultancy) and is meant for sole use by the recipient
and not for circulation. This document is not to be reported or copied
or made available to others. It should not be considered to be taken
as an offer to sell or a solicitation to buy any security. The
information contained herein is from sources believed reliable. We do
not represent that it is accurate or complete and it should not be
relied upon as such. We may have from time to time positions or
options on, and buy and sell securities referred to herein. We may
from time to time solicit from, or perform investment banking, or
other services for, any company mentioned in this document

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