Reliance money has initiated coverage on Indoco Remedies with a BUY rating. Indoco has recently entered into a JV partnership with US based Amneal Pharmaceuticals to develop, manufacture, market and distribute 10 ophthalmic products for the US market.The patents of 3 products have already expired and rests are under patent. Indoco expects few Para-IV opportunities from these product baskets. The important aspect worth noting is that the cost of product development and manufacturing would be borne by the duo equally. (more…)
Month: November 2007
Future Logistics from Pantaloon Retail
Kishore Biyani-led Future Group’s – Future Logistics Solutions Limited (FLSL), will invest Rs 400 crore in next three years to operate additional mega merchandising hubs and warehouses as it aims to touch a top line of Rs 800 crore by 2010.
Within three years, FLSL plans to operate about seven new mega merchandising hubs ranging from 70,000-100,000 sq feet and 30 smaller warehouses in cities across India, which would extend service to non-group companies also.
Future Logistics CEO Anshuman Singh said,
Going further, in line with Future Retail’s growth, FLSL plans to operate additional seven hubs and 30 warehouses. These hubs will receive products from vendors and then feed the other smaller warehouses across the country. Currently, sites which meet our requirements are being identified and evaluated. While development of all hubs will happen simultaneously, we expect the first mega hub to be completed in early 2009 in Western India.
If all the dreams of Kishore Biyani come true, then he may create more wealth for his shareholders than Dhirubhai Ambani in the long run.
UBS on BHEL and DLF
As per estimates, the global equipment supply situation is expected to remain tight in the short to medium term. Global manufacturers such as Alstom have upgraded their global capacity addition estimates. There is a 28% deficit between target and MW under construction/commissioned for the XI Plan with 92% of this gap of 21,783MW in thermal capacity addition in India.
UBS upgrades BHEL’s earnings estimate to Rs 66.66 and Rs 94.7 (more…)
Accumulate Ahmednagar Forging and Shiv Vani Oil
Ahmednagar Forgings Ltd – AFL
AFL is a 50.7% subsidiary of Amtek Auto, manufactures small- and medium-sized forged components such as connecting rods, gear blanks, shafts, transmission components, flanges and hubs.The company’s sales for the quarter grew by 30.5% to Rs159.2 crore. The growth was led by a 16% increase in the domestic sales and a 62.5% surge in exports. The operating profit margin (OPM) increased by 100 basis points to 20.3%. As a result, the operating profit grew by 37.3%. Higher interest and depreciation costs led the profit after tax (PAT) to grow by 26.8% to Rs17.1 crore.
AFL stock trades at attractive valuations of (more…)
XL Telecom & Energy receives orders worth Rs 658 million
XL Telecom & Energy has announced that the company has received fresh orders valued over Rs 658 million for export of solar panels to EU.
The total pending order book for the export of solar panels with this order stands at Rs 2.635 billion which is equal to 16 MW solar panels. The company is bullish on entering as a vendor with this large power utility company and is confident that over the period the customer engagement will be extremely fruitful with multiple repeat orders. The company is working smooth execution of these orders with in the financial year ending of 30 June 2008.
Raymond + Reebok focus on Indian Kids
Raymond India and Reebok India have realized that the Indian parents are willing to spend more on their kids than themselves.
Raymond which introduced Color Plus for women a year ago now plans to introduce the same brand to launch kids’ wear in the premium segment. Gini & Jony, Lilliput and Zapp are existing kids wear brand but none capture the premium segment of the market. The branded kids wear market is about Rs 3,000 crore and by creating sub brand, Raymond wants to leverage the premium positioning of Color Plus. Raymond wants to be the first entrant in the kids segment and cash in on the retail boom in India.
Global sportswear giant, Reebok which represents individual sports with significant presence in the Indian market is now focusing on wooing the Indian kids. This is one of the best strategies to catch them when they are young and they are likely to stay brand loyal when they grow up.
Targeting kids in the range of 6-12 years, Reebok kids wear will be a premium brand and will be available in 600 stores across India from the end of this year. Mr. Prem of Reebok India said,
Kids are more individualistic and an epitome of Reebok brand value I Am What I Am. Indian kids are more aware of the international designs and have a choice of their own. They desire for the latest trends in fashion.
Reebok will launch Rbk Tech sports, Classic, Edge, Metromobility, Core and Sprint fit for Boys. The collection for girls range from Rbk Sweets, Dance Academy, Tech Sport and Workout.