Indian Equity Research and Investment Strategy
India’s worst bank – ICICI Bank just a while ago was downgraded by Morgan Stanley from Overweight to Equalweight. Our Analyst on the 5th of March wrote asking if ICICI Bank was hiding the facts of sub-prime and it appears to be so after reading the Morgan Stanley report.
Nearly 55% of ICBK’s loan growth comes from its international loan book, which is wholesale funded. Credit spreads for ICBK have spiked, which will impact loan & fees income growth in F2009. (more…)
Kotak Mahindra Bank’s heavy exposure to Capital markets for income has led it to a downgrade by Morgan Stanley. Market turnover in India is down 55% from peak levels. Kotak has multiple leverage to markets with both earnings and multiples, which are, dependent on the strength of the equity markets. Even now it is trading at 25x F2009E earnings (which could be revised down further if markets remain weak). (more…)
We are providing the BSE SENSEX Constitutents and Weightage. (more…)
Punj Lloyd just a while ago informed us that a consortium led by Punj Lloyd has been awarded the Sabah Sarawak gas pipeline project for an approximate value of US$ 500 million by Petronas Carigali Sdn Bhd, a subsidiary of Petronas, the State Oil and Gas Major in Malaysia.
The scope of the work involves engineering, procurement, construction and commissioning of a 512 km, 36″ diameter onshore natural gas pipeline from the proposed Sabah Oil and Gas Teminal in Kimanis, Sabah to Petronas Liquefied Natural Gas complex in Bintulu, Sarawak State and associated facilities.
The new SEBI chief, Chandu Bhave is silent about his actions but according to reports, he has taken up the investigation of Ambani companies [Anil & Mukesh] about the exponential rise in group company stock prices.
Companies controlled by Mukesh Ambani likely to fall under investigation are,
Reliance Industrial Infrastructure Ltd – Stock price rose from Rs 380 to Rs 3,500 and has collapsed to Rs 1,150.
Anil Ambani has lot of small companies whose share prices sky rocketed. (more…)
Reliance Energy [down 10.5%] virtually a shell [empty] company after promoter Mr. Anil Ambani looted the projects to his private venture Reliance Power Ltd. We raised our voice against Reliance Energy transferring business and assets to Reliance Power where Mr. Anil Ambani gained a back door entry at Rs 17 / share in Reliance Power Ltd and you public bought it at Rs 430.
Anil Ambani more of a speculator and a Trader [currently] without any project execution track record announced yet another speculative move – Buy Back of Reliance Energy shares. Reliance Energy is starving for CASH for CAPEX and why is Ambani going for a Buy Back ? Reasons is obvious – Boost the stock price. [God Damm Ambani must know that no where in the world Utlility companies trade at a forward P/E more than 15 while his REL is traded close to 30 and RPL more than 200 on FY2010 earnings estimate]