August, 2008 | Dalal Street

Mutual Funds Review

JP Morgan – Latin America Equity Off-Shore Fund

August 26, 20081 min read

JP Morgan AMC India is on a fund launching spree. The AMC has filed an offer document with Securities and Exchange Board of India (SEBI) to launch its Latin America Equity Off-Shore Fund, an open-ended fund of funds scheme. Just last week we saw that JP Morgan has filed with the SEBI to launch a Greater China Fund.

The scheme offers growth option only. The minimum subscription amount for the scheme is fixed at Rs 10,000 and in multiples of Re 1 thereafter.

The fund house will infuse up to 80%-100% in units of JPMorgan Funds – Latin America Equity Fund with medium to high risk profile. Similarly, it might invest 0-20% in money market instruments and/or units of liquid schemes with low to medium risk profile.

The objective of the scheme is to grant long term capital appreciation by investing in JPMorgan Funds – Latin American Equity Fund.

Equity Research

Infosys’ Axon Bid for Stronger Bottomline

August 26, 20081 min read

Infosys plans to acquire UK-based SAP consulting co. Axon Group plc (LSE:AXO) for US$753.1m at 19% premium to last closing price. Based on last 5yrs reported PATg of 68% & 08 consensus forecast EPS g 29%, deal likely fair at 15x CY08 consensus EPS. Axon could add 10% to Infy revs, take up Europe to ~30% of revs from 27% today & grow consulting /enterprise solutions to 30% from 24% today. (more…)

Economy, Markets and Macro Views

Yo-Yo Markets + Range Bound – Credit Suisse

August 24, 20082 min read

Credit Suisse expects the Sensex to repeatedly touch both extremes of the 13,000-16,000 band in the next six months. At each extreme, are advised to prepare portfolios for a market move to the other. Some of the key negatives that are factored in – soon to stabilise inflation, a peaking monetary tightening cycle, diminished earnings expectations and stable global commodity prices. (more…)

Equity Research

Change in Earnings + Price Target

August 24, 20081 min read

Here is a list for companies where earnings and price targets have been changed over the past one month depending on Q1FY09 by Kotak Institutional Equities. (more…)

Breaking Corporate India Earnings News

NALCO – End of Commodity Boom ?

August 21, 20081 min read

National Aluminium Company Limited (NALCO)’s net sales jumped 25.9% yoy to Rs. 14.7 bn on the back of higher realisations and increased sales volumes. Adj. net profit increased 17.6% yoy to Rs. 5.3 bn, restricted by higher employee expenses and power & fuel costs. EBITDA increased 19.5% yoy to Rs. 7.4 bn. The increase in EBITDA was restricted by a 27.2% increase in power & fuel costs, primarily due to the shortage of coal being witnessed by the Company.

The Company is already operating at 100% capacity utilization for alumina and 104% for aluminum. Thus, with no additional capacity expected in FY09, we expect volume growth to be marginal. Volume growth for FY09 is expected to be 1.7%. In FY10, the management expects volumes to increase 15% yoy on the back of new capacity expected to be commissioned by the end of FY09.

NALCO is expected to report an EPS of Rs 27.3 for FY09.

Economy, Markets and Macro Views

Goldman Prefers China Over India

August 21, 20082 min read

The sharp drop in oil prices led the Indian stocks to recover 15% from its July low outperforming the region by 20%. There is skepticism in the oil staying at ~110 levels and Goldman expects the price to rebound within the next 4 months [Q4 2008]. Adding to Indian market woes is valuations remain among the highest in the region and the risks to macro and EPS growth are to the downside. (more…)

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