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Today domestic markets are likely to open negative as majority of Asian markets have opened with blood bath. The sentiments are weak across Asia as there is lack of specific news to drive the market. The US markets have also closed flat on Friday thus exuding lack of buying sentiments. In the domestic arena one could expect a lackluster trading throughout the day with an essence of mild volatility.

On Friday, the domestic markets closed with losses for the second consecutive day. The positive opening was better than anticipated however as the trading progressed the selling pressures engulfed the stocks at broader level despite positive cues from the Asian markets. The European markets on the other hand exuded negative cues. Traders were skeptic about the current high level of the benchmark indices and correction at this level seems to be inevitable. Funds and retail investors booked profits across sectors like Realty, Auto, Teck and CD as they closed with losses of 2.49%, 2.41%, 2.40% and 2.29% respectively. On the other hand, Metal and Oil & Gas stocks provided a support to markets as they gained 1.93% and 1.38% respectively. We expect the markets to be trading volatile.

The BSE Sensex closed with a loss of 173.53 points at 15,237.94 and NSE Nifty ended with a loss of 54.30 points at 4,583.40. BSE Mid Caps and Small Caps closed with losses of 112.55 points and 135.78 points at 5,235.03 and 6,014.66 respectively. The BSE Sensex touched intraday high of 15,600.30 and intraday low of 15,174.28.

On Friday, the US Markets closed mixed. There was narrow trading range in the southward throughout the day however towards the end some buying sentiments helped major indices to close in green. Materials stocks closed with a loss of 1.3%, which have provided leadership in recent weeks, were knocked lower as commodities came under pressure amid a rally in the U.S. dollar. Further the Semiconductor stocks also fell under pressure this session, sending the Semiconductor Index to a 1.8% loss. On stock specific move investment services firm BlackRock (-6.04) trailed after updating its outlook to reflect its agreement to pay $13.5 billion for the global investors business from Barclays (-0.63). The US light crude oil for July delivery closed low by 0.8% at $72.05 per barrel on the New York Mercantile Exchange.

The Dow Jones Industrial Average (DJIA) closed high by 28.34 points at 8,799.26 the NASDAQ Composite (RIXF) index declined by 3.57 points to close at 1,858.80 and the S&P 500 (SPX) closed flat at 946.21.

Today major stock markets in Asia are trading negative. Hang Seng is low by 269.66 points at 18,620.02. Shanghai Composite is low by 5.497 points at 2,738.26. Japan’’s Nikkei is trading low by 99.71 points at 10,036.11. Strait Times is also low by 38.72 points at 2,338.35. KLSE Composite is up by 1.19 at 1,090.15.

Indian ADRs ended lower on Friday. In the telecom space, Tata Communication was down 4.04% and MTNL was down 7.54%. In the banking space, HDFC Bank was down 2.41% and ICICI Bank was down 2.32%. In the IT space, Wipro was down 4.88% while Infosys was down 0.03%, Satyam Computers as down 14.65% and Patni Computers was down 3.99%. In other sectors, Sterlite Industries was down 0.88%, Tata Motors was down 1.89% while Dr Reddy’’s Labs was down 3.47%.

The FIIs on Friday stood as net buyers in equity and debt. The Gross equity purchased stood at Rs 3,581.80 Crore and gross debt purchased stood at Rs 10.00 Crore, while the gross equity sold stood at Rs 2,588.70 Crore and gross debt sold stood at Rs 0.00 Crore. Therefore, the net investment of equity and debt reported were Rs 993.20 Crore and Rs 10.00 Crore respectively.

On Friday, the partially convertible rupee closed at 47.61/62 per dollar, flat as compared to previous close at 47.60/61. The local currency had surged an intra day high of 47.37 against the green back.

On BSE, total number of shares traded were 56.51 Crore and total turnover stood at Rs 7,897.45 Crore. On NSE, total number of shares traded was 129.89 Crore and total turnover was Rs 23,706.55 Crore.

Top traded volumes on NSE Nifty – Unitech with 72746311 shares, Suzlon Energy with 58382257 shares, Hindalco with 35767252 shares, Tata Steel with 14190125 shares, followed by Idea Cellular with 13909756 shares.

On NSE Future and Options, total number of contracts traded in index futures was 781871 with a total turnover of Rs 17,244.10 Crore. Along with this total number of contracts traded in stock futures were 463465 with a total turnover of Rs 28,402.22 Crore. Total numbers of contracts for index options were 1152359 with a total turnover of Rs 26,976.32 Crore and total numbers of contracts for stock options were 46406 and notional turnover was Rs 2,829.77 Crore.

Today, Nifty would have a support at 4,493 and resistance at 4,635 and BSE Sensex has support at 15,110 and resistance at 15,359.

For details contact AjayJP@MOSTIndia.com

Today’s View: POSITIVE

“SBI Numbers strong, quality weak: 4QFY08 PAT at Rs18.8b was higher v/s our estimates, on account of stronger NII and lower opex due to reversal of excess provision for employee benefits. NII grew 6% YoY and 13% QoQ to Rs48b. NII includes Rs3.8b of interest on tax refund. Adjusting for tax refund, NII has been flat YoY. In FY08, margins are lower by 35bp to 3.07%. In FY08, core fees have grown strong by 23%. Big disappointment was in asset quality, as gross NPAs increased to >3% and net NPA were at 1.8%. Delinquency has increased to 2.2% in FY08 v/s 1.9% in FY07.
Deposits increased by 23% to Rs5.4t (QoQ up 5%) while loans increased by 24% YoY to Rs4.2t (QoQ up 7%). Management guides for 25% growth in loans and 22% growth in deposits in FY08.
Gross NPAs increased 28% YoY and 21% QoQ in absolute amount. Net NPAs increased 41% YoY and 32% QoQ in absolute amount. Provision coverage ratio remains lower at 42%. NPA provisions increased 40% in FY08.

While margins are likely to remain stable (owing to the capital impact) and balance sheet growth at 20%, we expect NPA provisions to remain high for SBI considering the build-up in gross NPAs and its lower provision coverage ratio. Adjusted for SBI Life’s value at Rs192/share,
the stock trades at 1.5x FY09 consolidated BV and 1.3x FY10 consolidated BV..”
“BoI reported 26% NII growth in 4QFY08 to Rs12.2b, higher than our estimate of 16% growth. Net profit grew by 69% to Rs7.6b, significantly higher than our estimate (Rs4.5b) due to stronger core operating numbers, treasury profits and recoveries. Strong balance sheet growth (advances up 32%, deposits up 25%), stable margins (3% in FY08, 3.2% in 4QFY08), traction in fees (up 30%) and reduction in NPAs (net NPAs at 0.5%) are indicators of BoI’s superior performance across parameters.
Core fee income excluding forex grew by 31% YoY to Rs3.8 in 4QFY08 and ~30% in FY08. In line with our expectations, operating leverage is providing a boost to BoI’s profits in FY08.
We expect RoA to sustain at 1.1-1.2% over next two years for BoI and RoE to sustain at 22-23%. We believe BoI is one of the best managed PSU bank with focus on improving core operating profitability and shareholder returns. The stock trades at a P/E of 6.7x FY10E EPS and P/BV of 1.4x FY10E BV. .Buy for investments and trading. ”
“Maruti reported increase of 23.8% in April 2008 volumes to 62,336 units (higher than our est of 55,000 units).
- Domestic volume growth was 22.4% to 59,539 units, while exports increased 64.5% YoY to 2,797 units.
- Volume growth was driven by the A3 segment (+97.1% YoY) due to new launch DZire and low base of last year following discontinuance of Baleno. The A2 segment (+27.3% YoY) and the MPV segment (+25.9% YoY) also registered robust volume growth.
- We expect MSIL to register volume growth of 13.5% in FY09 (10% domestic volume growth and 60% export volume growth). At our existing estimates, we expect residual growth of 12.7% in FY09.
- The stock trades at 10.6x FY09E EPS of Rs70.2 and 9.1x FY10E EPS of Rs81.9. Buy for investments.”

 Today’s View: Positive bias      Intermediate Trend Up

Markets in a wait and watch mode with the RBI monetary policy coming up today. A 25-50bps increase in Repo in factored in the prices. An increase in CRR or increase in repo more than 50bps points would come as a negative surprise .Maintain a positive stance
“Indiabulls Securities (IBSEC IN, Mkt Cap: $750mn, CMP Rs123) 4QFY08 revenues grew 55% YoY to Rs1.72b (down 18% QoQ) led by growth in Broking and Related services which grew 46% YoY to Rs1.61bn. Other Income grew to Rs98.2mn v/s Rs10.6mn in 4QFY07. QoQ fall in the revenues is attributed to fall in the overall volumes in the industry (down 27% QoQ). The mangement has not disclosed its market share (we est at ~4.8% market share).
For FY08, revenues grew 45% YoY to Rs6.21bn. Brokerage and related income constitutes ~96% of the total revenues v/s 95% in FY07. EBIT grew to Rs 4.0bn v/s Rs2.1bn in FY07. In FY08, EBIT margins improved from 48% to 62%. In FY08, PAT increased 41% to Rs2.52bn and the PAT margins have improved to 39% v/s 31%.
In 4QFY08, EBIT grew 60% YoY to Rs 962mn v/s Rs600mn in 4QFY07 implying the improvement in EBIT margins to 56% v/s 54% in 4QFY07. In 4QFY08, PAT grew 41% YoY to Rs534mn v/s Rs380mn. PAT margins improved to 39% v/s 34% in 4QFY07.
The company has declared dividend of Rs7.5 per share implying dividend yield of >6%. The stock trades at 12x FY08 EPS of Rs9.9.A very good trading buy.”
Sesa Goa reported very strong numbers . Reported EPS stands at 392 for FY08. Realisations doubled at $81/tonne vs $40 an year ago. Company reported Q4 net profit Rs7.98bn (up 220%), income Rs16.44bn (up 120%), Iron ore sales 12.39mn tons (10.87mn tons), exports 10.18mn tons (7.66mn tons) and Q4 average earning per ton of ore exports $81 vs $40. Sales are more in favour of spot than contract .Company declaes 1:10 stock split and a1:1 bonus. A very strong buy for trading as well as investments
“IDFC’s consolidated earnings increased by 61% YoY in 4QFY08 to Rs1.5b and 47% in FY08 to Rs7.4b. Earnings were lower than our estimate (Rs7.7b for FY08) due to lower treasury gains during 4QFY08 and higher operating expenses.
Balance sheet grew 56% in FY08 to Rs279b, driven by a 47% growth in loans to Rs205b and a built up of proprietary and treasury investment portfolio. Treasury portfolio increased to Rs52.6b in FY08 from Rs28.5b in FY07 (up 85%). Gross disbursements increased 63% to Rs120b in FY08. Approvals increased by 54% to Rs203b. Outstanding disbursements grew 52% in FY08 to Rs234b, indicating a loan book growth going forward.
IDFC reported ROA of 3.1% in FY08 (12-m rolling), lower than Dec 07 level of 3.2% and 3.3% in FY07. While overall margin was stable QoQ, it has improved by 10bp YoY. Operating costs increased significantly during 4QFY08 - up 203% YoY and 37% QoQ, affecting ROA. We await management clarification.
We continue to be positive on the growth prospects and believe that IDFC can leverage its strength to earn significant higher fee income. We would be revising our estimates. Based on our current estimates, we expect IDFC to report an EPS of Rs8 in FY09E and Rs10 in FY10E.
Book value would be Rs52 in FY09 and Rs60 in FY10. Stock trades at 3.2x FY09E BV and 20.9x FY09E EPS and 2.8x FY10E BV
and 16.7x FY10E EPS. We expect RoA of 3% and RoE of 18% in FY10. Maintain Buy for investments “

Today’s View: Positive bias Intermediate Trend Up Reversal Levels NIFTY Sell below 4850  SENSEX 16150

Expect a positive opening. . Two policy action meets this week -the Fed and the RBI. Expect a 25bps cut from the Fed.Maintain a positive bias
” Bharti Airtel’s 4QFY08 earnings grew 37% YoY and 7.6% QoQ to Rs18.5b (7% above our estimate of Rs17.3b). Earnings surprise was led by higher-than-est revenues, which grew 45% YoY and 12.3% QoQ to Rs78.2b (4.7% ahead of our est). EBITDA margin declined 100bp QoQ to 41.6% due to steep tariff decline and higher marketing costs.
Mobile ARPU remained flat QoQ at Rs357/month despite a steep 7% QoQ cut in tariffs as Minutes of use per subscriber jumped 7% QoQ to 507. This is the highest sequential MOU growth for Bharti in the past 11 quarters and is a positive surprise given muted expectations due to relatively flat MOU witnessed during 9MFY08.
Approximately 30,000 of the tower portfolio would be transferred to Indus towers in which Bharti’s passive infrastructure subsidiary Bharti Infratel would own 42% stake.
We are positively surprised by the MOU growth leading to 20%+ QoQ increase in mobile traffic volumes for Bharti. We believe that demand elasticity (experienced by both Bharti Airtel and Idea Cellular) is the key positive takeaway for the quarter and reflects likely lower pressure on forward ARPU in an industry scenario where RPM decline remains both a reality and key affordability driver of the mobile services.
We are upgrading our FY09 and FY10 ARPU estimates by ~5% to reflect higher MOU.
We now expect an ARPU decline of ~9% in FY09 to Rs329 and a further 8% decline to Rs296 in FY10.”
“ICICI Bank’s NII grew by 29% YoY in 4QFY08 (vs our est of 27% growth) as margins improved on the back of slower advances growth and higher CASA ratio. The impact of ~Rs20b of capital raising in July 07 and zero growth in term deposits YoY (entire deposit growth led by CASA) enabled the bank to improve NIM by 10bp QoQ to 2.4%. Fees grew 35% YoY and income from venture units remained strong for the fifth consecutive quarter. NPA trends continue to disappoint with Gross NPAs (adjusted for sell downs) rising 15% QoQ. PAT grew 39% YoY in 4QFY08 to Rs11.5b (vs our estimate of Rs9.1b) mainly on account of lower opex due to rationalisation of staff costs and lower bonuses during FY08 as well as lower taxes due to strong treasury profits.
We value the key subsidiaries of the bank at Rs270 per share post 20% holding company discount. Adjusted for the value of subs, ICICI trades at 1.7x FY09 BV, 1.5x FY10 BV (adjusted for investments in key ventures) and 15x FY09 EPS, 11x FY10 EPS. RoE from core lending business and based on net worth excluding investments in key ventures is expected to improve to 14% by FY10.
Maintain Buy with a price target of 1,140 (2x FY10 Book Value adjused for subs + 270 value of subs after 20% holding company discount),
an upside of 25%”
“In 4QFY08, Maruti’s volumes grew just 1.1% YoY, while realizations were 8.1% higher, enabling net sales growth of 9.2% YoY. EBITDA margin expanded 140bp YoY to 15.7% and adjusted PAT grew 14.6% YoY to Rs5.1b.
Net sales grew 9.2% YoY in 4QFY08, driven by 8.1% increase in realizations. We have adjusted the net sales figure for the Rs545m compensation paid by Maruti to its dealers for the reduction in small car prices following the excise duty cut to 12% in Budget 2008.
EBITDA margin expanded to 15.7%, while EBITDA increased 21.7% YoY to Rs7.9b on account of other operating income nearly doubling to Rs2.1b. We have adjusted other expenditure for the Rs505m provision for foreign currency derivatives.
Maruti has changed its depreciation policy to reduce the useful life of its plant and machinery. As a result, the company has taken a one-time hit of Rs2.1b during 4QFY08. Adjusting for this, Maruti registered 14.6% increase in its adjusted PAT to Rs5.1b - its reported PAT was Rs3b.
The stock trades at 10.6x FY09E EPS of Rs70.2 and 9.1x FY10E EPS of Rs81.9. Recommend Buy for investments.”

Today’s View: Positive bias

Expect a positive opening. .Maintain a positive bias.May F&O series starts with a total open interest of Rs46600cr and futures open interest of Rs36200cr-an extremely light position .Inflation figures to be higher than last week due to base effect . Expect figures to be between 7.2% and 7.4%
” In 4QFY08, Maruti’s volumes grew just 1.1% YoY, while realizations were 8.1% higher, enabling net sales growth of 9.2% YoY. EBITDA margin expanded 140bp YoY to 15.7% and adjusted PAT grew 14.6% YoY to Rs5.1b.
Net sales grew 9.2% YoY in 4QFY08, driven by 8.1% increase in realizations. We have adjusted the net sales figure for the Rs545m compensation paid by Maruti to its dealers for the reduction in small car prices following the excise duty cut to 12% in Budget 2008.
EBITDA margin expanded to 15.7%, while EBITDA increased 21.7% YoY to Rs7.9b on account of other operating income nearly doubling to Rs2.1b. We have adjusted other expenditure for the Rs505m provision for foreign currency derivatives.
Maruti has changed its depreciation policy to reduce the useful life of its plant and machinery. As a result, the company has taken a one-time hit of Rs2.1b during 4QFY08. Adjusting for this, Maruti registered 14.6% increase in its adjusted PAT to Rs5.1b - its reported PAT was Rs3b.
The stock trades at 10.6x FY09E EPS of Rs70.2 and 9.1x FY10E EPS of Rs81.9. Recommend Buy for investments.”
“Hero Honda’s 4QFY08 results were significantly better than estimates as EBITDA margin improved 90bp QoQ and 430bp YoY to 14.8% (vs est of 13.6%). PAT grew by 47.1% to Rs2.99b.
In 4QFY08, HH’s volumes increased 3.3% YoY to 884,075 units, while the two-wheelers industry volumes declined 4.3% YoY.
Net sales growth of 5.6% in 4QFY08 was also driven by 2.3% improvement in realisations. HH’s realisations are increasing due to a shift in product mix towards premium models. The 125-250cc motorcycle segment contributed 6.9% of Hero Honda’s two-wheeler sales in 4QFY08 (6.4% in 4QFY07 and 5.2% in 3QFY08).
EBITDA margin at 14.8% was the highest since 4QFY06. EBITDA margin improvement was helped by lower RM/Sales at 70.7% (v/s 70.9% in 3QFY08 and 73.1% in 4QFY07). The company was also able to lower its other expenditure / net sales ratio to 11% (v/s 11.5% in 3QFY08 and 13% in 4QFY07). EBITDA increased 48.9% YoY to Rs4.1b.
We expect HH to report volume growth of 8.1% in FY09 and 7.6% in FY10. While we have raised our EBIDTA margin estimate to 13.4% for FY09,
we would see the impact of higher input prices before revising the margins further (2HFY08 margins of 14.3% is much above our assumption for FY09). Our revised EPS estimate is a growth of 16% in FY09 to Rs56.4 (vs Rs50.5 earlier). The stock trades at 13.8x FY09E EPS. Recommend a buy for investments.”

Today’s View: Positive bias

Expect a positive opening. .Maintain a positive bias.Equity risk appetite slowly returning back to Asia. High beta sectors like Capital Goods, Infrastructure and Real Estate back in focus
“Supercritical projects - possibility of negotiated orders to BHEL / L&T: Bulk award to domestic manufacturers for facilitating indigenization of supercritical technology has been a key contentious issue. Ministerial group has recommended order placement on negotiated basis to both BHEL
and L&T, at a price benchmark arrived through International Competitive Bidding (ICB) with transfer of technology clause.
Government policies towards “absolute insistence on domestic manufacturing”: Ministry of Power has stated that Chinese companies have bagged equipment orders for 20% of 78,577MW of planned capacity addition during Eleventh Plan. To promote domestic manufacturing, Minister of State for Power, Mr Jairam Ramesh has stated that government policies will move to absolute insistence on domestic manufacturing,
which will be applicable for all future power projects after 30 April 2008.
Recent developments could potentially address long term concerns for BHEL: Recent developments pertaining to (1) Bulk award of supercritical projects on negotiated basis, (2) Government proposals for absolute insistence on domestic manufacturing for Indian market
and (3) Negotiations by Tata Power and Reliance Power for equipment sourcing, have emerged as key positives for BHEL.
These could significantly boost FY09 order intake, and would be key triggers for stock price performance. Recommend a strong buy”
“Oriental Bank of Commerce reported a good set of numbers yesterday. Adjusted for the accelerated goodwill writeoff on account of Global Trust Bank amalgamation , profit growth was pretty impressive.The bank expects its CASA ratio to improve from 27% last year . It also aims to improve its NIM from 2.37%to atleast 2.7% in the current year Valuations are at 0.9xP/Book FY08 and 0.8xP/Book for FY09. Buy for investments
“

Today’s View: Positive bias

Expect a positive opening. Asia trading mostly in the green.Maintain a positive bias
“STERLITE INDUSTRIES: Zinc & Lead metal reserves increase 17% to 27.5m tons of MIC; Upgrade DCF value by 4%; Maintain BUY
- Sterlite Industries (STLT IN, Mkt Cap US$14.9b, CMP Rs 830, Buy) announced that its subsidiary Hindustan Zinc (64.5% stake, HZ IN, Mkt Cap US$6.3b, CMP Rs591, Buy) reserves & resources of Zinc and Lead metals have increased by 17% to 27.5m tons due to ongoing exploration activities in its mines, which HAVE been independently reviewed and certified as per JORC standard. The success of exploration has primarily been in the Sindesar Khurd and Rampura Agucha mines, with the potential of further addition in future.
- HZL will be ramping up its metal production to 1mtpa in coming years. The expanded reserves & resources are likely to last 27 years. We have carried our DCF valuation of Zinc and Lead metal .Expansion of reserves has increased DCF valuation of HZ by 4% to Rs1,072. Buy for investments”
” BANKING: RBI raises CRR by 50bp again; Aimed at reining in rising inflation; Marginally negative for banks and rate sensitives
- Reserve Bank of India (RBI) today raised CRR by 50bp to 8% to be effected in 2 tranches of 25bp each effective from April 26 and May 10. CRR is the Cash reserve ratio that banks need to maintain with RBI as a percentage of their net demand and time liabilities. This CRR hike would take out Rs185b of liquidity from the system. RBI in a phased manner has increased CRR from 5% in Dec 06 to 8% in May 08 to moderate growth in money supply, demand and in turn inflation.
As CRR balances do not earn any interest, CRR hike would put pressure on margins of the banks. In order to increase credit demand many large PSU banks (SBI, PNB, BoI, BoB, Canara) had lowered their PLR by 50bp in 4QFY08. Private banks except Axis Bank (by 25bp) have not cut their PLR. Post the current CRR hike, we believe the PSU banks would roll back their PLR cuts to counter the pressure on their margins and protect profitability. We estimate banks would have to increase their yields on advances by 7bp to recoup the revenue loss on account of the CRR hike. While bankers
might wait for the RBI policy before taking their decision on lending rates, we expect lending rates to rise for the system.We believe that the valuations
for the sector has already corrected owing to the large concerns on inflation, forex- & derivatives-related losses, slowing growth. We remain positive on
stocks where earnings visibility is strong and valuations being reasonable. Our preferred bets are Axis Bank, HDFC,ICICI and IDFC among private
banks / NBFCs (both HDFC and IDFC would not be affected owing to the CRR hike). Amongst PSU banks, we prefer Union Bank and Indian Bank
“

Sensex exhibited a strong uptrend from 15,563 to 16,778 i.e. around 1,200 points in just 4 trading sessions. In this uptrend IT stocks outperformed the indices as the Sensex moved around 8% whereas frontline IT stocks moved around 20% in this up move. Allthe frontline IT stocks are near their 200 DMA and the RSI on daily chart is also in overbought territory, hence profit booking is recommended in frontline IT stocks ( Infosys, Satyam, TCS and Wipro) in trading buying positions( F&O segment).

Today’s View: Positive bias

Expect a flat opening.Maintain a positive bias
TCS reported disappointing numbers both on the topline and bottomline. Since all the tech majors have reported numbers, any incremental upmove in the frontline technology pack looks unlikely . Clients are advised to book profits here
AXIS BANK 4QFY08: Above estimates; Significant improvement across business parameters; Upgrading estimates
Axis Bank reported 4QFY08 results significantly higher than estimates. NII increased by 89% YoY, as margins improved significantly to 3.93%.
PAT increased by 71% to Rs3.61b vs our est of Rs2.87b on back of strong growth in NII, fee income as well as treasury income.
The bank has made a contingent provision of Rs720m (100% of amount involved) towards the forex derivatives losses where two of its clients have contested the contracts and filed legal case against the banks.
The bank has also made a MTM losses of USD5.1m on its overseas CLN exposure of USD153m. The bank has disclosed that the mark to market losses for their corporates in forex derivatives are Rs5.5b.
The share of CASA deposits increased by 582bp YoY to 45.7% (stable QoQ). Improvement in asset quality continued in 4QFY08 with Gross NPAs down to 0.72% from 0.95% in 4QFY07 and 0.80% in 3QFY08. Net NPAs were also down to 0.36% from 0.61% in 4QFY07 and 0.42% in 3QFY08.
ØWe estimate BV of Rs267 and Rs307 in FY09 and FY10 respectively. We expect EPS to be Rs40 in FY09 and Rs52 in FY10. Stock trades at 3.3x
FY09E BV and 2.9x FY10E EPS and 22.5x FY09E EPS and 17.2x FY10E. Maintain Buy and rate Top Pick among private banks..