Indian Equity Research and Investment Strategy
Before Sharekhan’s coverage we would like to let you know that HDFC is a blind BUY at any rate. Hold it for 12-24 months, you will see the returns 🙂
HDFC has created significant value in its subsidiaries. Three of these-HDFC Bank, HDFC Life Insurance and HDFC Mutual Fund-are valued at Rs883 per share. They are also growing at a faster rate than HDFC. Separate listing of Insurance subsidiaries is on the cards too.
HDFC has gained significant market share in the (more…)
Kotak has initiated coverage on Strides Arcolab Ltd with a BUY rating after the some big ticket foreign deals.
Aspen will become a strategic, equal and regional partner in Strides’ Latin American operation. The transaction values the Latin American operations of Strides at over US$260 mn. Aspen will be a global partner for the development and global marketing of oncolytics.
Strides will acquire 51% interest of Co Pharma Ltd, (more…)
i-flex Solutions has informed us that the company and IZB Informatik-Zentrum, a Munich-based IT and telecommunication service provider for the financial sector has announced a strategic partnership to deliver a full range of banking application services to German banks. To this end, IZB Informatik-Zentrum will be using FLEXCUBE, i-flex’s flagship product, to deliver value-added application providing services (ASP) tailored to the specific needs of German banks.
i-flex is majority owned and managed by Oracle.
5Paisa/Indiainfoline has initiated coverage on ICSA India Ltd with a BUY Rating. ICSA, offers products and solutions for power, oil and gas and the water segment, has developed products and solutions to arrest losses during transmission. Apart from conventional products, it developed Intelligent Cathodic Protection solutions (iCAP), Intelligent Automatic Meter Reading (IAMR), Intelligent Automatic Water Reading solution (IAWR) and street light monitoring control systems.
With the introduction of newer and better products, expect the company’s operating margin to expand. This will be supported by patents for three of its products, which could lead to improved realizations. We expect operating margins to sustain at 26%, an improvement of 140 bps by FY09E over FY07.
ICSA’s revenues and profits have registered high growth of (more…)
We have obtained the Basis of Allotment for Retail Individual Investors in the IPO of Mundra Port and SEZ Ltd. The tentative date of listing of the stock is Nov27th. Grey Market premium (more…)
Unlike other sectors which are painting aggressive growth stories [we have to see their execution capabilities yet], the Hotel sector is something being invaded by Realty companies in India now. Existing big players, Indian Hotels[Taj Group by Tata] and Oberois have a very laid back expansion plans.
The demand-supply mismatch will likely continue for at least the next 18 months.
Rights Issue to Dilute Equity:The company intends to raise Rs14.4 billion through a rights issue of equity shares and non-convertible debentures. Further, it will issue warrants that will be convertible into equity 12 months after the rights offering. This should raise an additional Rs7.8-9 bn. However, these rights offerings
will dilute earnings by 30%.
MS forecasts a 29% earnings CAGR in F2007-09, EPS (more…)