Month: October 2007

If you had bought Punj Lloyd on our recommendation, then we recommend investors to Book Profits Partially. The stock has run up post-split 200% since we recommended and hence profits should be taken out.

Also book partial profits in (more…)

Voltas’ strong performance for the second quarter in a row came in as a positive surprise, after soft performance for most of last fiscal. Revenue growth, at ~35% Y-o-Y (to INR 7 bn), on the back of a 30% plus growth across segments. EBIT margins improved in excess of 500bps for both electromechanical projects (EMPS) and engineering agency and services (EAS) segments, tripling the EBITDA to INR 636 mn. Earnings was up 79% Y-o-Y on improved margins of 6% at the net level, to INR 431 mn.

Voltas current order backlog of Rs27bn (up 37%YoY) improves visibility going forward. Voltas won 3 international orders worth Rs7bn in Q208. Management has indicated (more…)

ABB has declared another good set of results. Revenues stood at Rs.13.8 bn; up 29% yoy while EBITDA was up 56% at Rs.1.7 bn and PAT was up 41% at Rs.1.16 bn. EBITDA margins have increased sharply YoY in 3Q07 by 219 bps to 12.5%, the strongest leverage in the last six quarters.

India is not only a promising domestic market, where ABB is well-positioned as a market leader in power and automation technologies, but also a key regional and global resource base because of lower costs and higher productivity.

ABB is getting pricey as it seems to be running ahead of the fundamentals. ABB has had a strong run over the past three years, outperforming the BSE Sensex significantly over different horizons. Citi downgraded ABB to Hold/Low (2L) risk from Buy/Low (1L) risk an new target price (more…)