Month: May 2007

Here are the excerpts from TCS Analysts Meet. No slowdown in BFSI; Robust demand environment. TCS management reiterated its view on the pricing uptick being on track – new clients are coming at 5-10% higher price point. TCS indicated that deal flow remains strong and lot of smaller deals (US$20-50 mn) were being awarded by existing clients.

TCS is expected to report an EPS of Rs 53, Rs 63 and Rs 74 for FY08, FY09 and FY10 respectively. With dollar under severe pressure from Indian Rupee, we maintain a BUY target on TCS but with a lower price target of Rs 1550. 21% upside from current levels.

HDFC Ltd 4Q beat JP Morgan [JPM] estimates; Profit was 7% higher, mainly from better fee growth and a lower cost-to-income ratio. JPM raised May08 price target is Rs1,824, which implies 9% upside from the current price. JPM retained OW rating given firm business dynamics and defensive nature of the stock.

Subsidiaries add 30% to sum of parts: 56% of subs value from HDFC Bank, 31% from the life company, and 10% from the mutual fund. Stock catalysts are likely to be continued market share increases at the expense of competitors, as well as value unlocking in ICICI’s insurance holding company.

HDFC is expected to report an EPS of Rs 74 and Rs 90 for FY08 and FY09.

DalalStreet. Biz recommend a Blind BUY on this stock whenever their is a market correction. You can expect 25-30% returns YoY.

HSBC in a report released jus ta while ago is overweight on Hindustan Construction Company. They have set a price Target of Rs 125.

HCC declared their full year number with sales growth of 19% to INR23.6bn (vs HSBC
estimate of INR24.3bn). The PBT was up 20% yoy, however, higher tax rate (additional
INR220mn due to removal of 80IA benefit) has resulted in decline in a profit to
INR793mn (vs HSBC estimates of INR857mn). The lower sales growth has been due to
the excessive snowfall and rain at some of its project sites resulting in project execution delay. The net profit growth was impacted by higher staff cost (up 59%), higher interest (50%), and depreciation cost (up 52%, capex of INR3.8bn)

HSBC has reduced FY08e and FY09e profit by 11% and 7% to INR1.18bn and INR1.56bn respectively. HSBC reduced FY08e sales by 4% to INR30.7bn, while increasing the sales of FY09e marginally. HCC’s EPS is expected to be around INR4.6 and INR6.1 for FY08e and FY09e.