Our on-the-ground checks with industry participants suggest greater evidence of a slowdown – which also seems to be spreading to the office segment in some cities – in property transactions/prices. And many property firms’ diversification
into telecoms is also discomforting. (more…)
Year: 2007
Tata Steel + Sterlite Upgraded
Commodity price forecasts are strong on the back of continued strong global demand growth and limited supply response from the mining
industry. The headwind in the US is unlikely to precipitate a sharp slowdown in demand because of the “decoupling” of the US economy from BRICs and other economies.
Tata Steel:
Estimates on greater visibility of synergy benefits from Corus and lower than expected equity dilution from the proposed equity issuances. This results in 1.3%, 8.2% and 20.7% higher net profit estimates for FY2008/09/10E estimates respectively. Following a sharp re-rating of regional steel peers, revise SOTP based 12-month Target Price (more…)
Desperate Analyst compares Rolta to L&T – Mad Market
A colleague of mine told that a Research Analyst working with a famous Australian brokerage house active in the Indian market, compared in his analysis Rolta India an IT company to L&T to raise the Target price of the stock. We all know that Engineering & Construction stocks enjoy far superior rating in this Bull market than IT stocks.
(more…)
Arvind Mills + Cherokee in India
Arvind Mills which revamped its Flying Machine jeans brand is now joining hands with global retailers. Arvind Mills Ltd has informed us that Cherokee Inc., a leading global licensor and brand management Company that it has signed an exclusive international license agreement for its Cherokee brand with Arvind Mills. India’s largest integrated textile company and retailer. This multi year agreement covers a wide range of categories including men’s, women’s and children’s clothing, footwear, accessories, home and other categories.
Arvind Mills and Celebrity fashions also have contracts from Reliance Retail.
Merill Lynch Preferred Stocks
Here is a list of Most Preferred and Least Preferred stocks from Merill Lynch.
Top 3 preferred Stocks,
- BHEL – Maintained at the top spot with huge order book. Capex meeting schedule.
- Suzlon – Bharti Airtel is out after the recent spectrum imbroglio and Suzlon Energy is in. Successfully addressed law and order issues. Large order wins from DLF and Reliance Energy improve visibility.
- Grasim Industries – Strong cement prices in the upcoming construction season (Oct ’07 onwards)
Lest Preferred Stocks,
- Hindalco – September results likely to be hurt by strong rupee
- Tata Motors – Declining Volumes
- Pantaloon Retail India – Same stores sales growth is choppy. margin pressure. Inventory sell-off expected at lower prices
This does not necessarily mean a BUY or SELL on the stocks discussed above. Dig through our research reports to take an informed decision.
HSBC Underweight on GMR Infra
GMR reported 2Q FY08 results, with revenue up 26%, to INR3.95bn against estimate of INR4.2bn. The revenue growth has been predominately due to the additional contribution from the airport business (INR753mn) and higher PLF of the two power plants (INR223mn). However, the net profit has been down 7.5% yoy, to INR495mn , due to INR343mn loss of Vemagiri power project (VPGL). VPGL has been non-operational since September 2006, due to the non-availability of gas and this will remain a drag on profitability for the full year.