Indian Equity Research and Investment Strategy
Sintex Industries Limited, manufacturers of storage tanks have came out with excellent Q2 results. Sales increased by 50% from 178 crores to 254 crores year over year from sep 2005 to 2006. Net profit increased by 90% comparing Q2 2006 to Q2 2007. Sintex Industries Q2 consolidated net profit is at Rs 30.9 crore.
FII, Warburg Pincus holds significant investment in Sintex Industries Limited. They first invested in February-2005.
If you had applied for the Gayatri Projects Limited, IPO, you can now check the status of allotment here on Karvy website.
In early August DalalStreet.Biz had put a BUY recommendation on Amtek Auto Limited when the price was around Rs290. We still maintain the same BUY rating on the stock at around Rs320 and continue to be bullish about the prospects of the company in long term.
DalalStreet.Biz analysts are also bullish on the long term prospects of Bharat Forge Company Limited. Bharat Forge is setting up a large manufacturing facility in SEZ. It has been aggressively expanding in export markets. BUY 25% of your capacity around Rs350 and we will inform you of further developments.
We are also studying the prospects of HT Media and we will keep you posted as soon as our research on the stock is done.
Thanks and Happy Investing.
Logistics, Retail, Telecom and IT are likely to be the star performers in India Inc for Q2. In a research report published by ILFS,[PDF] Logistics is expected to report a rise in YoY sales of 232% followed by Retail expected to report 70.2% rise in YoY sales. IT is expected to report growth of 39% and Telecom 36%.
ILFS favorite picks sectorwise are as follows.
Logistics:
Gateway Distriparks and Allcargo Global
Retail:
Pantaloon Retail (India) Limited and Shoppers Stop.
IT:
Infosys Technologies Limited, TCS, Wipro (My favorites are Satyam and HCL Technologies)
Find details of the IPO subscriptions for the following companies that closed on Oct-06-2006. According to SEBI, a Retail Individual Investor is one who applies for less than Rs100,000 worth of shares. However, for applying for over Rs50,000 you need to quote your Income Tax PAN Number.
Hanung Toys and Textiles limited IPO Subscription Details
Total Issue Size 9500000
Total Bids Received 41030100
Total Bids Received at Cut-off Price 9055380
No. of times issue is subscribed 4.32
Retail Individual Investors (RIIs) 4.7982
Accel FrontLine limited IPO Subscription Details
Total Issue Size 5635950
Total Bids Received 13759970
Total Bids Received at Cut-off Price 7804370
No. of times issue is subscribed 2.44
Retail Individual Investors (RIIs) 4.2150
DCB IPO – Development Credit bank of india IPO Subscription Details
Total Issue Size 71500000
Total Bids Received 2551212500
Total Bids Received at Cut-off Price 355016750
No. of times issue is subscribed 35.68 times
Retail Individual Investors (RIIs) 15.3059 times
Global Vectra IPO Subscription Details
Total Issue Size 3500000
Total Bids Received 12575130
Total Bids Received at Cut-off Price 1201920
No. of times issue is subscribed 3.59
Retail Individual Investors (RIIs) 1.1073 times
Disclosure: I have not applied for any of these issues.
The Indian IT industry is expected to announce a rock solid quarter for Q2. Infosys results are expected on 11-OCT-2006. IT companies are expected to grow 8.8% QoQ and analysts at JP Morgan have set some high expectations from Infosys, 11% QoQ.
CLSA has outperform on Infosys and Wipro and underperform on the rest(Satyam, TCS, HCL Technologies). Read CLSA report here. [PDF] I personally believe Satyam and HCL-Technologies are undervalued compared to their peers. Both the companies should decisively cross $1 Billion in sales this financial year, critical figure required to bid for large IT contracts. Satyam and HCL-Tech hopefully will get re-rated very soon. Accumulate on every decline.
Disclosure: I am a small investor and hold both Satyam and HCL-Technologies.