Indian Equity Research and Investment Strategy
Citigroup which upgraded the stock of Suzlon Energy with a price target of Rs 1,700 in June, has upgraded the stock again with a new target price, on the back of major orders and clear earnings visibility.
Suzlon delivered 1,000MW in 1HFY08 and is set to deliver 1,500+MW volumes in 2HFY08. Delivery of higher volumes in 2HFY08 should lead to better fixed cost apportioning resulting in WTG margins improving to 16.1% levels for the full year.
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Siemens has bagged Rs 870 million (Rs 87 crore) order from McNally Bharat Engineers for supplying electricals for Rashtriya Ispat Nigam’s new sinter plant at Vizag. This sinter plant is currently the second largest of its kind in India and will be commissioned by August 2009.
The Industrial Solutions & Services (I&S) division of the company has bagged an order from McNally Bharat Engineers, for the electricals of the new sinter plant 3 at RINL’s Vizag steel plant. The scope of work for this order includes designing, engineering, supply, erection and commissioning of complete power distribution system, motors and drives, automation as well as instrumentation on a turnkey basis. This project is the second sinter plant order for electricals to be executed by the company in a turnkey basis and is scheduled to be commissioned by August 2009.
A month after Lehman Brothers downgraded Indian IT companies, Citigroup Analyst gathered the courage and downgraded the earnings target. We had also said that a downgrade was necessary which has come a bit too late.
Here are the new Target prices for Infosys, Wipro, TCS, (more…)
Mundra Port and SEZ [MPSEZL] is the first of its kind of IPO in India. Mundra Port has been operational since 2001 and now it has got approvals for SEZ as well.
MPSEZL, primarily deals in providing bulk cargo services, container cargo, crude oil cargo and value-added port services, including railway services between Mundra port and Adipur.
Objects of the issue:
Construction and development of infrastructure facilities in the proposed SEZ at Mundra. 7,000mn. Construction and development of a terminal for coal and other cargo at Mundra Port. 4,500 mn. Investment in Adani Petronet (Dahej) Port (more…)
Stone India has informed us that the company executed technical collaboration agreement with Sumitomo Electric Industries, Japan for manufacturing of air spring for passenger and EMU/DMU/MEMU coaches for Indian Railways.
Sumitomo Electrical Industries is a leading supplier of this product to Shinaksen. They also supply air spring to other rail market worldwide. This collaboration will introduce the latest technology in this field to Indian railways which is going through major technology advancement in its rolling stock manufacturing.
The Indian railways (IR) proposes to install air spring as a technology upgradation. This will replace the existing mechanical suspension system with pneumatic suspension, resulting in higher passenger comfort for trains running at higher speed. This is in line with international practice. Currently IR inducts more than 2800 new coaches every year. IR also proposes to selectively upgrade their existing rolling stock of about 25,000 coaches through retrofitment of air spring and pneumatic suspension system.
The board of Diamond Cables has approved to accept a loan of Rs 68 crore from GE Capital. The said loan shall be for tenure of 5 years with a moratorium of 1 year. On completion of this project the company shall be amongst the top three power cables manufacturer in the country.
Looking at the bright prospects of the company and its growth plans the company requires long term working capital funds, which will enable its big ticket entry in Turnkey T&D projects. The board has approved a Loan of Rs 160 crore from clearwater capital partners lid, out of which tranche A of the loan comprising Rs 90 crore shall be repaid in one year and tranche B of the loan comprising of Rs 70 crore will be repaid in 5 years time.
This debt aggregating Rs 228 crore which is now raised from Clearwater Capital Partner and GE Capital will greatly enhance the companies working capital and result in maximum usage of assets and resource resulting in large scale increase in the top line of the company.