Indian Equity Research and Investment Strategy
Lehman Brothers, was the first one to Downgrade the Indian IT companies and we were the first one to report it here. Lehman has now come up with recommendations on the Indian FMCG space.
They have recommendations on Asian Paints, Dabur India, Marico Ltd and Godrej Consumer products Ltd. (more…)
Kotak has initiated coverage on Ranbaxy with a BUY rating in view of the company’s strong product pipeline, increased contribution of the branded generic business and acquisitions, growth from domestic and semi-regulated markets.
Ranbaxy’s Para-IV pipeline comprises around 18 first-to-file products representing a market size of ~ US$26 bn valued at innovator prices. In the next two years, the company is expected to benefit from the launch of complex injectables in the area of Penems and Limuses, which has a market potential of over US$3 bn.
Hindustan Dorr Oliver has bagged a prestigious order in its environmental division for design, supply, engineering and construction of integrated effluent treatment plant from Hindustan Petroleum Corporation (HPCL) for their refinery at Mumbai.
The order value is close to Rs 1115 millions and will consist of adoption of latest technologies in environmental engineering including sequential bio reactor and membrane bio reactor. The company will be executing the above mentioned contract in 18 months.
Mahindra & Mahindra has announced that Keshub Mahindra, chairman of the $6 billion Mahindra Group, was conferred with the prestigious ernst & young entrepreneur of the year lifetime achievement award at a glittering ceremony held in Delhi.
The ernst & young entrepreneur of the year awards recognize successful entrepreneurs who have displayed an inspiring vision, unbated zeal and passion to make a difference.
If you look at our recommendations, our Analysts have always recommended various Diversified funds. We had received few e-mails last year on how we missed the opportunity in IT Specific funds. Well Investors, we were the first one to burn our fingures in Sector specfic funds, especially in IT sector in 2000. [Gul Tekchandani’s Sun Emerging IT fund, Samir Arora’s Alliance IT Fund etc]
Now in the image to your left, you can see yourself the returns IT specific funds have given in the past one year Vs Diversified Equity funds.
IT Funds – 0.39%
Diversified Funds – 44.57%
A Year ago IT funds were at 55% and Diversified Funds were again at 40%.
The focus of our investment advise is for disciplined investors who are serious to create wealth. Now to share the insider information, the fund managers of Diversified funds are also very smart. When they feel Banking or Capital Goods stocks are going to rise, they go for the top 5 stocks in the sector and ride the boom and exit. It is not that they are not participating at all.
Happy Investing!!!
We had an exclusive coverage of Jaiprakash Associates [JP Associates] last month. Now Merill Lynch and Sharekhan have upgraded the stock.
JPA has launched the first tranche of a 3mn sq. ft development (see Chart 4) at its NOIDA land bank. Sales at JP Greens are likely to be robust at >1mn sq. ft in FY08E. The initial response to the bookings appears to be very strong, as the average rate stands at Rs6,000 per square foot. Formula 1 Holdings has confirmed signing a contract with JPSK Sports (subs. of JPA) to stage the first-ever F1 Grand Prix at NCR, India in 2010. We think F1 circuit will be accompanied with related land bank, which would justify investment.
According to media reports, ICICI Venture Funds (more…)