[image: PPFAS]<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com> *18th January 2010* *Inside this report...* Parag’s View: Paying Too Much for the Future <#1263fb53c2de534f_pv> Inflation - Impact on long term savings <#1263fb53c2de534f_inflation> Infosys Technologies Limited: Q3 FY10 Result Update <#1263fb53c2de534f_infy> Exide Industries Limited: Q3 FY10 Result Update <#1263fb53c2de534f_exide> VST Industries Limited: Q3 FY10 Result Update <#1263fb53c2de534f_vst> NIIT Technologies Limited: Q3 FY10 Result Update <#1263fb53c2de534f_niit> *Parag’s View: Paying Too Much for the Future* >From the archives... Let's start off with the basics: say I offer you a cheeseburger. How much will you be willing to pay for it ? Rs 20? Rs 30? Maybe even Rs 250 if it was from a 5 star restaurant ? But would you, in your right mind, pay Rs 1000 for a single burger? Not unless it's justified, you might tell yourself. The same thing happens in the stock market on a daily basis. A company's earnings are growing at 10% but people somehow pay 20 times or even more, not realizing that they over-paid. But wait, you again say, perhaps these people are paying for what the company will be worth in future! But then how will we know what the value of the company will be in say, 2 to 3 years time?
This is where value investing and using valuation methods come in. If we want to pay for future growth, we have to be sure we are paying a good price for it. Even for a good company, one should NOT pay too much for a certain rate of growth; otherwise you will find that it will take years for the company's earnings to catch up with the price you paid. more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23pv> *Inflation - Impact on long term savings* Kavitha Menon | [email protected] When it comes to any discussion on inflation I cannot help remember an advertisement of an insurance company. It showed a guy drinking a cup of coffee and a sandwich, while reading a newspaper. While he is busy reading, a second guy sitting on the adjacent table quietly takes a big gulp of his drink and a huge bite off his sandwich. The first guy never even realizes that half his food has been stolen. The closing line goes like this - “That's what inflation does to your savings”. The ad very creatively explains the exact effect of inflation on our long term investment returns. It silently reduces the value of your money or its purchasing power while you are busy saving. more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23inflation> *Infosys Technologies Limited: Q3 FY10 Result Update* Raunak Onkar | [email protected] Infosys reported a subdued quarter with YoY topline showing a decline of ~1% and a bottomline decline of ~4%. This might be an expected result till the IT budgets get decided in the 4th Quarter. Although this isnt an alarming decline, it shows that a well diversified business can also show signs of decline in light of an uncertain outlook. One laudable thing about the business is its operating margin, which at 35.5% is 1% higher than last year. In spite of a slightly bad quarter (in absolute terms) the nature of the contracts entered have improved their margins. This is on the backdrop of a weak dollar, but other cost efficiencies coupled with stable pricing have contributed to the margin improvement. The company is venturing into new geographies, by setting up its base in New Zealand. This signals the need to sustain good growth by not leaving any opportunity unexplored. With the new post crisis fervor for cost efficiencies, it is a favorable time for IT companies to seek deals across previously unexplored geographies. more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23infy> *Exide Industries Limited: Q3 FY10 Result Update* Anuj Anandwala | [email protected] *The Charge Continues!* Exide Industries Ltd. (EIL) has posted substantial growth for the quarter and 9 months ended Dec'09. Bottom line for the company has zoomed by 132% to Rs. 1,305Mn for Q310 v/s Rs. 561.5Mn for Q309, on the back of falling raw material costs. For the current quarter, EIL's top line has risen by 10% Y-Y to Rs. 10,879.5Mn (Rs. 9,883.5Mn), which came ahead of our expectations. Improving growth in the Replacement and OE sales aided the company's Auto Battery segment in clocking better growth during the quarter; which was also supported by a decent up move in its Industrial Battery segment. Correspondingly, for the 9 months ended Dec'09, EIL's bottom line has increased by 86% to Rs. 4,025.5Mn from Rs. 2,162Mn for the corresponding 9 months last year. Top line for the current 9 months has shown a flattish rise of 1.5% to Rs. 33,082.2Mn (Rs. 32,581Mn). more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23exide> *VST Industries Limited: Q3 FY10 Result Update* Ruchak Mehta | [email protected] VST Industries reported a mediocre set of numbers for the quarter ended December 2009. On a y-o-y basis, Revenues saw a marginal decline of 1.1% to Rs.1,258.2 Mn from Rs.1,272.6 Mn. while Profits after Tax (PAT) were down by 20.3% to Rs.173.6 Mn from Rs.217.9 Mn a year ago. The decline in PAT was primarily on account of increasing Raw Material prices. Even though Sales remained flat, Cost of Materials went up by 13.7% y-o-y, an increase of 357 bps (as a % of Gross Sales). Apart from this, Employee costs also went up by 128 bps. The overall effect of these was dampened a bit due to Forex Gains of Rs.34.7 Mn v/s a loss of Rs.31.6 Mn in the same period a year ago. more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23vst> *NIIT Technologies Limited: Q3 FY10 Result Update* Raunak Onkar | [email protected] NIIT Tech reported a flat topline this quarter registering a 7% decline YoY. Despite that PAT grew 111% YoY. The topline was eroded by Rs. 128 Mn, on account of crystallization of hedging losses. In spite of this, the operating margins are at ~22%, excl. the hedging losses, the margins would be at 26%. The company has been growing steadily over the past quarters, adjusting their headcount to improve their margins. Although after a gap of 6 quarters, hiring has resumed and 197 employees have been added. Hiring is a good sign, although this time the non-linear business has also been a dominant contributor to the topline (@ 27% of total revenues). more...<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php%23niit> <http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fpdf-docs%2Fresearch%2Fweek-reports%2F2010%2Fwr180110.pdf> <http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php> <http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=https%3A%2F%2Fparagparikh.wiki.zoho.com%2F> <http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.facebook.com%2Fpages%2FPPFAS%2F169732744085> <http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fwhats-new%2Findex.php> Download PDF<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fpdf-docs%2Fresearch%2Fweek-reports%2F2010%2Fwr180110.pdf> View Full Report<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fresearch%2Fereports%2Fweek%2F180110%2Findex.php> Feedback<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=https%3A%2F%2Fparagparikh.wiki.zoho.com%2F> Become a Fan<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.facebook.com%2Fpages%2FPPFAS%2F169732744085> Screensaver<http://click.icptrack.com/icp/relay.php?r=17706065&msgid=308456&act=QAY9&c=240789&destination=http%3A%2F%2Fwww.ppfas.com%2Fwhats-new%2Findex.php> If you have a query please email us at [email protected]. We would be glad to answer any queries with regard to this report. *Parag Parikh Financial Advisory Services Limited* 130/132, Great Western Building, 1st Floor, S.B.S. Marg, Near Lion Gate, Fort, Mumbai - 400 001 INDIA. Tel : 91 22 2284 6555 Fax : 91 22 2284 6553 This message was sent from Parag Parikh Research to [email protected]. It was sent from: PPFAS, 130/132, Great Western Building, Shahid Bhagat Singh Marg, Near Lion Gate, Fort,, Mumbai, Maharashtra 400001, India. You can modify/update your subscription via the link below. Email Marketing by <http://www.icontact.com/a.pl/144186> [image: iContact - Try It Free!] <http://www.icontact.com/a.pl/144186> Manage your subscription <http://app.icontact.com/icp/mmail-mprofile.pl?r=17706065&l=20023&s=QAY9&m=308456&c=240789> <http://app.icontact.com/icp/sub/forward?m=308456&s=17706065&c=QAY9&cid=240789> -- Regards, !! anuj anandwala !!--
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