July, 2007 | Dalal Street

IT SEZ Plans takes L&T to an all-time high

July 20, 20071 min read

Larsen and Toubro and Arun Excello Infrastructure on Thursday, 19 July 2007, announced the launch of an IT SEZ. The project coming up at Vallancheri, Tamil Nadu will have a total built up area of 2.70 million squre feet (sq. ft.), spread over eight blocks, ranging from 2.5 lakh sq. ft. to 4.50 lakh sq. ft. and would be completed in two phases. Construction of the first phase is expected to begin in August end this year and would constitute 1.5 million sq. ft.

The scrip had hit a high of Rs 2455, also a all time high for the scrip, and a low of Rs 2390.15 so far during the day.

SEZ in India is the Largest Real Estate Scam in the world. I have never heard of this place called Vallancheri and I wonder how many IT Exporting companies will move into that place. Don’t panic, L&Ts major role will be in construction by virtue of which it will get stake 🙂

Economy, Markets and Macro Views

Satyam Revises EPS Guidance Downwards

July 20, 20071 min read

Satyam Computer posted 2.1% fall in net profit to Rs 389.14 crore in Q1 June 2007 over March 2007. Total income rose 6.5% to Rs 1820.93 crore over Q4 March 2007

Satyam Computer has cut FY 2008 EPS guidance in rupee terms. It has now projected a between 12.5% to 14% growth in EPS to between Rs 24.14 and Rs 24.46. It had earlier guided of 18% to 20% EPS growth in rupee terms for FY 2008.

It has, however, raised FY 2008 revenue guidance in rupee terms. It now expects 21.1% and 22.5% growth in revenue in rupee terms compared to earlier guidance of 20% to 22%.

The stock hit a low of Rs 471 and high of Rs 489.80 so far during the day

Breaking Corporate India Earnings News

Tech Mahindra Disappointing Results + Stock Drops

July 20, 20071 min read

BT Revenue Disappoints Tepid sales; margin above expectations – Revenue grew ~7% qoq to US$211mn – below expectation of US$218mn. Revenue in INR terms was flat at Rs.8.76b. EBITDA margin declined 340bps (vs. our expectation of 410bps decline). Lower taxes led to net profit of Rs.1.7b – marginally ahead in spite of lower sales growth.

Tech Mahindra’s consolidated net profit declined 13.1% to Rs 170.30 crore in Q1 June 2007 over Q4 March 2007. Revenue rose 0.2% to Rs 876.30 crore over March 2007.

The stock is down to Rs 1428. However, its a good BUY on decline.

Equity Research

Tata Tea Downgraded by Citi

July 20, 20071 min read

Citigroup Research downgraded the price target of Tata Tea Ltd after a disappointing quarter. Consolidated EBITDA margins declined by 340bps due to high advertising and promotional expenses. Tata Tea’s consolidated revenues grew by 28% driven primarily by its Eight O’ Clock acquisition and strong branded sales in its domestic business, which grew 18%. Profitability was, however, hit due to a higher tax rate and higher interest charges. Net profit declined 3.5% to Rs44.5m

Cutting FY08E and FY09E earnings estimates by 15.5% and 3.5% to reflect lower than expected 1QFY08 results. Citi reduced EBITDA margin assumptions building in higher ad-spend for Tetley. Consequently, to reflect lower earnings, Citi has cut target price to Rs1045 (Rs1150 earlier) retaining our target P/E multiple of 15x mid-FY09E earnings .

Send your comments and suggestions to “feedback AT DalalStreet.Biz”

Breaking Corporate India Earnings News

Gateway Distripzarks + Zee Entertainment – Recommendation

July 18, 20071 min read

Gateway Distriparks has announced its first quarter results. Consolidated PAT declined 6% Y/Y. This research report has complete analysis of Gateway Distriparks results.

Zee Entertainment announced Strong 1QFY08; Ad Growth Rocking, Pay Growth Yet to Fully Kick In. Here is future recommendation for Zee Entertainment.

Economy, Markets and Macro Views

BUY KPIT Cummins – Citi Research

July 18, 20071 min read

KPIT Cummins has declared results inline with expectations from Citigroup Research Analysts. Citi has recommended a BUY with a price-target of Rs 180. Prabhudas Liladhar had recommended a BUY on this stock last November.

KPIT has secured $55 Million, one of the largest BPO contracts in the offshore space. The company reported revenue of Rs.1.35bn –- 3.8% qoq growth (expectations of Rs.1.3bn) and net profit declined 10% qoq to Rs.127mn (exp. of Rs.122mn).

Revenue guidance was upwardly revised to US$145-148mn (from US$143-144mn earlier) due to better visibility while net profit guidance was downwardly revised to Rs.630-680mn (from Rs.700-730mn earlier) due to stronger INR.

KPIT is expected to report an EPS of Rs 7.91 and Rs 10.97 for FY08 and FY09, a growth of 39% for each year over its last year. 12-month target price is Rs180 based on 16x our FY09E EPS. Target multiple is derived by applying a ~15% discount to multiple for peer Satyam Computers.

« Prev 1 … 6 7 8 9 10 … 16 Next »