Year: 2007

Kotak Sec research group has put a BUY on Container Corporation of India Limited [CONCOR] with a price target of Rs 3,000. Potential upside of 35% from current levels.

Container traffic expected to touch 20 mn TEUs by 2015:
In FY07, Indian ports handled 5.4 mn TEUs as against 4.6 mn TEUs in FY06, thereby recording strong YoY growth of 17.1%.

Headroom for raising traffic till rail freight corridor becomes operational:
Currently, Concor runs approximately 16 to 17 trains in a day. On an average, it runs two trains to Mundra port, one to Pipavav and the remaining between JNPT and Delhi ICD. It is expected to go up to 22 and ultimately to a maximum of 25 trains per day on the current network of Indian railways.

Foray into end-to-end logistics services:
Concor has successfully forayed into offering end-to-end logistics solutions to its customers for domestic cargo. The company has tied up with various service providers like road transporters and coastal shipping companies to offer the entire gamut of logistics services.

Cold chain project:
Concor has already commenced commercial operations of its cold chain project in a phased manner. The entire cold chain project is being carried out under a wholly owned subsidiary named Fresh and Healthy Enterprises Ltd, incorporated in February 2006.

Auto carrier project:
Concor is moving ahead with its auto transportation project. The company has developed a special design of wagons to carry cars across the country on the Indian Railway network, primarily to bring down the cost incurred on transportation.

Financials of Container Corporation of India Limited:
Kotak maintains earnings estimates for FY08 and expect Concor to report net sales of Rs.38.3 bn, EBIDTA margin of 30.3% and PAT of Rs.8.2 bn, thereby translating into an EPS of Rs.126.7 and CEPS of Rs.144.3.

In FY09, Kotak expects Concor to report net sales of Rs.45.3 bn, that is, sales growth of 18.3%, EBIDTA margins of 30.0% and PAT of Rs.9.7 bn, that is, YoY growth of 17.9%, thereby translating into an EPS of Rs.149.3 and CEPS of Rs.169.9.

Morgan Stanley is underweight on GMR Infrastructure. Research firm continue to believe that the company has one of the best long-term stories in the infrastructure development sector in India but is underweight on GMR in the Short to Medium Term.

GMR handed over contracts on both the construction and operations side (advertisement at Delhi and duty free at Hyderabad) in the quarter. The market is focused on the potential value creation from the monetization of a 45 acre (5.9 million sq ft) hospitality district at Delhi Airport. GMR expects to finalize the developer for this land parcel by September 2007.

Valuations remain high; Morgan Stanley retains Underweight call on the company due to lack of earnings visibility and doubts over consistency of maintaining the same.

The results expectations for quarter ended June-30th from Indian Banking sector according to Citgroup research is as follows.

The top consistent performers are likely to be,
Punjab National Bank is expected to report Rs 405 crore Net Profit for Q12008. 10% increase YoY and 71% increase on QoQ basis.

Bank of Baroda is expected to report Rs 270 crore Net Profit for Q12008. 66% increase YoY and 10% increase on QoQ basis.

State Bank of India is expected to report Rs 1163 crore Net Profit for Q12008. 46% increase YoY and 22% decrease on QoQ basis.

The scenario is quite negative when it comes to private sector banks. All of them are likely to underperform compared to quarter ending March-2007.

ICICI Bank is expected to report Rs 696 crore Net Profit for Q12008. 12% increase YoY and 16% decrease on QoQ basis.

HDFC Bank is expected to report Rs 320 crore Net Profit for Q12008. 33% increase YoY and 9% decrease on QoQ basis.

UTi/Axis Bank is expected to report Rs 165 crore Net Profit for Q12008. 37% increase YoY and 22% decrease on QoQ basis.