HDFC Securities' Top NCD picks for June 2014

1. RETAIL RESEARCH
Issuer Series HSL Scrip code
Last traded
Price (Rs)
Coupon
Rate
(%)
Tenor
Residual
Maturity
(Year)
Interest
payment
frequency
Latest
Record
Date
Call / Put
Date
Tenor to
Call / Put
(Yrs)
YTC
(%)
Daily
Avg
Volume
(Nos)
YTM (%)
Tax Free Bonds
AAA Rated
PFC 892PFC33 ‐ Indivi PFC892B3NR 1105.25 8.92% 20 Yrs 19.47 Yrs Yearly ‐ ‐ ‐ ‐ 2750 8.32%
NHB NHBTF2023 ‐ N6 ‐ Ind NHB893N6NR 5403 8.93% 15 Yrs 14.82 Yrs Yearly ‐ ‐ ‐ ‐ 1613 8.20%
IIFCL 891IIFCL34E ‐ Indivi IIF891NBNR 1100 8.91% 20 Yrs 19.65 Yrs Yearly ‐ ‐ ‐ ‐ 1851 8.20%
NHAI N6 ‐ Individual NHA875N6NR 1069.12 8.75% 15 Yrs 14.69 Yrs Yearly 28‐Feb‐14 ‐ ‐ ‐ 27989 8.16%
AA+ Rated
HUDCO 751HUDCO28 HUD751N5NR 961.53 7.51% 15 Yrs 13.72 Yrs Yearly 1‐Feb‐14 ‐ ‐ ‐ 738 8.28%
HUDCO 901HUDCO34 ‐ Indivi HUD9013BNR 1110 9.01% 20 Yrs 19.63 Yrs Yearly ‐ ‐ ‐ ‐ 1907 8.24%
Taxable Bonds
AAA Rated
SBI N3 STABANN3NR 10309.99 9.75% 10 Years 6.79 Yrs Yearly 16‐Mar‐14 17‐Mar‐16 1.79 Yrs 8.84% 75 9.43%
SBI N5 STABANN5NR 10595.65 9.95% 15 Years 11.79 Yrs Yearly 16‐Mar‐14 17‐Mar‐21 6.79 Yrs 9.07% 387 9.35%
AA+ Rated
Residual Maturity‐ Below 24 months
Shriram Transport STFC NY ‐ Individual SRTRANNYNR 1052.03 ‐ 3 Years 2.17 Yrs Cumulative ‐ ‐ ‐ ‐ 89 12.76%
Shriram Transport STFC NR ‐ Individual SRTRANNRNR 1003.1 11.15% 3 Years 1.19 Yrs Yearly 12‐Mar‐14 ‐ ‐ ‐ 72 12.72%
Residual Maturity‐ Above 24 months
Shriram Transport STFC NW ‐ Individual SRTRANNWNR 993 11.15% 5 Years 4.16 Yrs Yearly 12‐Mar‐14 ‐ ‐ ‐ 499 12.10%
Shriram Transport STFC NX ‐ Individual SRTRANNXNR 986 10.63% 5 Years 4.16 Yrs Monthly 16‐May‐14 ‐ ‐ ‐ 201 11.65%
AA and AA‐ Rated
Residual Maturity‐ Below 24 months
Muthoot Finance 1075MFL16I MF1075N1NR 966 11.50% 2 Years 1.68 Yrs Monthly 17‐May‐14 ‐ ‐ ‐ 409 14.67%
India Infoline IIFLFIN N9 INDINFN9NR 1020.25 12.00% 3 Years 2.33 Yrs Yearly 26‐Mar‐14 ‐ ‐ ‐ 231 12.02%
Residual Maturity‐ Above 24 months
Muthoot Finance 1125MFL17II MF1125N2NR 981.2 12.00% 3 Years 2.68 Yrs Monthly 17‐May‐14 ‐ ‐ ‐ 751 13.62%
Religare Finvest 18H RELFINN8NR 1200 ‐ 5.83 Years 4.19 Yrs Cumulative ‐ ‐ ‐ ‐ 123 13.00%
Note:
• Credit Rating (as per latest data): For STFC NCDs – CARE AA+ / Crisil AA (Stable). For TATA Cap NCDs – CARE AA+ / ICRA LAA+. For L&T Fin NCDs – CARE AA+ / ICRA LAA+. For SBI Bonds – CARE AAA / AAA/ Stable” by CRISIL. For
IndiaInfoline NCDs issued on Aug 2011 and Sep 2012 ‐ CARE AA‐' by CARE & ‘ICRA AA‐’ by ICRA. For IndiaInfoline NCDs issued on Sep 2013 ‐ ‘CARE AA’[Double A] by CARE & BWR AA (Outlook:Stable)' by Brickwork. For
SHRIRAMCITI NCDs ‐ Crisil – ‘AA‐/Stable’ Care – ‘AA'. For Muthoot NCDs ‐ ‘CRISIL AA‐/Stable’ by CRISIL and ‘[ICRA] AA‐(stable)’ by ICRA. For Manappuram NCDs A+/Negative by CRISIL. For Religare Finvest NCDs ‐ [ICRA] AA –
(Stable) from ICRA Ltd. &[CARE] AA‐ from CARE. For NHAI NCDs ‐ “CRISIL AAA/Stable” by CRISIL “CARE AAA” by CARE and "Fitch AAA(ind) with Stable Outlook” by FITCH. For PFC NCDs ‐ "CRISIL AAA/Stable” by CRISIL and “ICRA
AAA” by ICRA. For IRFC ‐ ‘“CRISIL AAA/Stable” by CRISIL, “[ICRA] AAA” by ICRA and “CARE AAA” by CARE ". For HUDCO ‐ ‘CARE AA+’ from CARE and ‘Fitch AA+ (ind)’ from Fitch. For REC ‐ CRISIL AAA/Stable”by CRISIL,“CARE AAA”by
CARE, “Fitch AAA(ind)”by FITCH and [ICRA]AAA”by ICRA. For Tata Capital Financial Service Ltd ‐ AA+/Stable” from ICRA Limited and “CARE AA” from CARE. For IIFCL, “ICRA AAA/Stable” by ICRA,“BWR AAA” by Brickworks and “CARE
AAA” by CARE. For NHB, “CRISIL AAA/Stable” and “CARE AAA". For Ennore Port, BWR AA+ (SO), CRISIL AA‐/Stable and CARE AA‐. For Dredging Corporation of India, BWR AA+ (SO) and “CARE AA”. For Jawaharlal Nehru Port Trust,
“CRISIL AAA/Stable”, "BWR AAA". For NHPC, “[ICRA] AAA” by ICRA IND ‘AAA’ by India Rating & Research Private Limited and ‘CARE AAA’ by CARE. For NTPC, ‘CRISIL AAA’ from CRISIL and ‘ICRA AAA’ from ICRA. For ECL ‐ CARE AA’
by CARE and ‘BWR AA by Brickwork. For SREI "CARE AA‐ (Double A Minus)’ by CARE and ‘BWR AA (BWR Double A) ’by BRICKWORK. For IIFHL: CRISIL AA‐/Stable by CRISIL and CARE AA‐ [CARE AA Minus] by CARE.
• YTM is yield to maturity ‐ Annualized yield that would be realized on a bond if the bond is held until the maturity date. Yield to call (YTC) is the annualized rate of return that an investor would earn if he bought a callable bond at
its current market price and held until the call is first exercisable by the issuer.
• Religare, PFC, REC, DCI, Ennore Port, IIFCL NCDs are listed only on BSE, while the rest are listed on NSE and (in some cases ‐ Muthoot finance, IIFL, HUDCO and some series of Shriram Citi, Muthoot Fin & Religare Fin) also on BSE. In
case where the NCD are listed on both the exchanges, the price on the exchange where it is traded more (average daily volumes) is considered.
• FV of NCDs in all cases is Rs.1000, except Rs.10,000 for SBI, Rs.1,00,000 for TATA Cap N1 and Rs. 200 for STFC N1 and STFC N2. For NHB, the FV of Series NHBTF2023 is Rs 10,000, while the FV for Series N1,N2,N3,N4,N5,N6 is Rs
5000.
• Last traded date means date of last trade (not beyond the previous month). Further freak trades are not considered for YTM calculations. While short listing the top picks, enough weightage is given to frequency of trade and
average volumes. Unexpected cut in credit rating could result in bond prices going down and resultant MTM loss.
• As mentioned, the series named 'NHPC ‐ Individual', 'REC ‐ Individual', 'HUDCO ‐ Individual' and 'NTPC ‐ Individual' are available only for Retail investors. To avail of 25 bps higher coupon rates, retailers have to hold the bonds for
the face value amount of not more than Rs. 10 lakh as on record dates. If they hold the bonds for the face value amount of more than Rs. 10 lakh on the record date (based on demat account or PAN), then they will lose out 25
bps in the coupon rates.
• The series mentioned as individual in taxable NCDs of Shriram Transport and Shriram Citi are eligible for retail investments (and higher coupon) irrespective of investment amount. The only criterion for higher interest is that the
holder should be an individual as on the record date.
RETAIL RESEARCH
June 03, 2014
Top NCD Picks – June (1)
RETAIL RESEARCH Fax: (022) 3075 3435
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www.hdfcsec.com
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