Indian Equity Research and Investment Strategy
Ranbaxy Laboratories has received tentative approval from the U.S. Food and Drug Administration (US FDA) to manufacture and market valsartan tablets, 40 mg, 80 mg, 160 mg and 320 mg. Total annual market sales for valsartan tablets were $1.3 billion (IMS MAT June 2007).
Valsartan is indicated for the treatment of hypertension alone or in combination with other anti-hypertensive agents. Valsartan is also indicated for the treatment of heart failure (NYHA class II -IV).
ONGC Petro-additions (OPaL) is the special purpose vehicle (SPV) formed by the company for the Rs 13,500 crore petrochemical complex at Dahej in Gujarat. Oil and Natural Gas Corporation (ONGC) holds 26% cent of the equity in OPaL and Gujarat State Petroleum Corporation (GSPC) enjoys 5% stake as a joint venture partner.
At the current price of Rs 1190, the scrip trades at a PE multiple of 13.80, based on Q1 June 2007 annualised EPS of Rs 86.22.
Transco is the sole transmission company in Philippines. The Philippines government is planning to privatise Transco. Its value is estimated at $3.5-$4.6 billion.
Power Grid Corporation plans to acquire the special purpose vehicle (SPV) being floated to take over and manage the assets of the Philippines National Transmission Corporation (Transco) for 25 years. While Citadel, one of the largest private holding companies in that country with interests in aviation services, freight management and logistics and telecommunications, will hold 90%, Power Grid will hold the remaining 10% in the SPV.
The Power Grid board has already approved the acquisition of the 10% equity stake in the SPV. Apart from the Citadel-Power Grid combine, Terna of Italy, State Grid of China, Tenega of Malaysia and SNC Lavlin of Canada are also in the fray, along with local partners, the report added.
You probably think we are insane to recommend a BUY when the SENSEX is at an all time high. Well our job gets really tough, when India an oil dependent economy has to face the burden of larger fiscal deficit with rising oil prices [$93 / barrel an all time high]. However, our analysts are extremely careful when they recommend a BUY. You will also see some Book Profits recommendation within the next few hours.
Bharat Forge’s standalone Q2 net profit was 27% ahead of estimates, driven by higher sales and huge surprise in margins. (more…)
Kotak Mahindra Bank stunned analysts on the street with results recording a PAT growth of 147% YoY. Broking profits up 215%+ (100% yoy rise – slight market share gains), and investment banking profits up 218%; and high league table positions. Buoyant primary/secondary markets key drivers;
Asset management group now manages almost $10b in assets – across domestic MF, portfolio management – domestic and offshore, and the more recent, alternative asset class. Key growth area – fees, potential performance fees upsides, business generating synergies and value generator. (more…)
Idea Cellular released disappointing results for 2Q FY08, with key disappointments on ARPU, network operating expenses, subscriber acquisition costs and deferred tax. Due to a sharp fall in ARPU, revenue grew 5.7% QoQ and 54.7% YoY to Rs15.6bn against our estimate of Rs16.4bn (expected growth of 11.3% QoQ). EBITDA margins also disappointed and fell 202bp on QoQ basis to 32.7%. A sharp reduction in margins led to a marginal reduction in EBITDA, which fell 0.4% QoQ to Rs5.1bn. EBITDA was 11% lower than estimates. PAT fell 28.6% QoQ to Rs2.2bn.
All the brokerage houses have conflicting ideas about Idea cellular. Macquarie wireless research expects the company to report an EPS of Rs 5.20 and Rs 6.75 for FY08 and FY09 and has set a target (more…)