Indian Equity Research and Investment Strategy
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]
The BSE Sensex is down 645 points to 15,896.63 at 2:05 IST. Weak global cues are pulling the market down very badly.
Out of 758 stocks that were locked in lower circuit filter, 93.13% or 706 are from BSE ‘B’ and BSE ‘S’ group.
Lower circuit is the day’s minimum possible level to which stock can fall with no buyers available at that point.
Citigroup in a report released just minutes ago has pushed the “EXIT” button on the stock. Citi analyst underestimated the cost that Suzlon would have to pay in executing its strategy to become the top 3 WTG manufacturers in each market it operates and the pressures that it would put on management bandwidth in managing so many moving parts of a complex supply chain.
Adding to Suzlon’s woes are – (1) Supply delays, (2) tower shortages, (3) key component shortages, (4) negative forex movements, and (5) nacelle custom duty changes in the US. (more…)
The basis of allotment of Rural Electrification Corporation – REC is out. All retail applications for Rs 94,500 / 900 shares have been alloted 900 shares. We had a subscribe recommendation for REC IPO. The stock is expected to be listed in the week of March-17th. See the complete basis of allotment here. (more…)
The US sub-prime crisis has hit ICICI Bank. The bank did provide US$75m in 4QFY08 for marked-to-market (MTM) losses on its CDO exposure and the UK subsidiary’s investment portfolio. However, the bank concealed further losses it is facing until Minister of State for Finance Pawan Kumar Bansal said in the parliament that ICICI Bank’s cumulative MTM losses on its international business are $264m (Rs10.5b), as at Jan end.
CLSA has cut earnings estimate of ICICI by 5-7% for FY08. The bank is still not very clear on its stand about USD 2.2 bn exposure to CDO/CDS. Further MTM losses can be expected.