Indian Equity Research and Investment Strategy
KSK Energy Ventures gets a listing of discount on the bourses. KSK Energy Ventures got listed at Rs 220 on the BSE down by Rs 20 compared to its issue price of Rs 240.
The scrip is currently trading at Rs 195.35 and has touched a high of Rs 234.80 on the BSE. (more…)
Ranbaxy Laboratories stock was hammered on the bourses by 10% on concerns raised by the US FDA which has filed a motion in a US court seeking access to certain privileged documents related to Ranbaxy’s manufacturing operations as part of an ongoing investigation.
Ranbaxy has stated that the allegations are baseless & intends to file a response on 14 July 08. It has denied media reports of prosecution proceedings being initiated or that its executives have been asked to depose. It maintains that this is a part of an investigation that’s been on for 3 years during which the FDA tested over 200 randomly collected samples of its products without finding any evidence of non compliance.
Thinking out of the box, could Pfizer have had a say in this FDA investigation to derail the Japanese takeover of Ranbaxy ?Last month Ranbaxy promoters sold their stake to Daiichi-Sankyo thus giving the Japanese company the management control of Ranbaxy Labs – India’s largest Pharma company.
It was slowdown in the entire Indian stock broking industry. Edelweiss Capitals‘ volumes were down 26% QoQ, slightly higher than the industry (-17% QoQ). Higher decline in revenues (-38% QoQ) was due to: a) higher derivatives proportion (an industry trend), and b) sharper decline in investment banking revenues (-75% QoQ).
Operating costs (after adjusting for treatment of STT) have declined 55% QoQ. This is significantly higher than the drop in volumes. The company reported a net profit of Rs 63.8 cr a 22.7% decline QoQ and 24.3% below consensus estimates on the street. For the full year, Edelweiss is espected to report EPS of Rs 42.13.
In a somewhat bearish view on India, Barclay Capital research is forecasting the Indian Inflation to hit 17% by Sept-2008 and will continue to stay in Double Digits until May-2009. (more…)
Inflation, as measured by the Wholesale Price Index, rose to 11.89% for the week ending Jun 28 vs. 11.63% last week and 4.42% a year ago. Component wise, primary articles were up 10.8%; manufactured products were up 10.6%, fuel price index was up 16.3%. Like the past, the price index of iron-ore is up +46%, basic metals +22%, manufactured food products +16.7%, chemicals +9.5% and textiles +5.8%, and the continued uptrend in industrial fuels. (more…)
Infosys Technologies well known for building luxury IT campuses on land acquired at cheap prices from various Governments, today reported results for Q1FY09, which are below expectations. Infosys and other Indian IT companies which are mainly dependent on outsourcing were dumped on the bourses in afternoon trading. Infosys led the massive sell off in IT stocks with loss of 7.11%.
Infosys reported revenues of $1155m (1.1% qoq), below Street expectations. Margins declined ~210 bps, in line with expectations. (more…)