Indian Equity Research and Investment Strategy
Post Q32008 results both Tata Tea and Britannia Industries look good and can be a safe haven considered to the over heated financial and Realty sectors.
Tata Tea:
3Q EBITDA growth of 29% was ahead of estimates – margins have been improving over the last 3 quarters, driven by improving cost management and better product mix. Net profit (pre-exceptional) grew 175% due to decline in interest cost owing to cash inflow from Glaceau sale. (more…)
CCS Infotech has informed us that the company has opened the its first multi brand IT showroom CCS Zone Retail in Velachery, Chennai. The CCS Zone is located at 34, Sakhti Vijayalakshmi Nagar, 2nd street, 100 feet by pass road, Velachery, Chennai. The showroom showcases and retails their products like PCs, laptops, servers and other advanced computer & mobile related accessories.
This showroom was inaugurated by B Surya Narayanan, director, sales & marketing, South, Intel India
TVS Motors:Q3 results were predictably very poor, with net profit declining 49% YoY, and EBITDA declining 49% YoY and 24% QoQ. We are again revising down forecasts. With no change in fundamentals, we maintain our Sell rating on the stock. Q3 margins contracted to another low of 1.7% (down 145bps QoQ), compared to our estimate of 2.6%. We see continuation of muted trends, given the squeeze from competition, and delays in upcoming launches which could improve sales mix i.e. 125cc bike Flame. (more…)
Tata Consultancy Services has signed an agreement with Sony Pictures Entertainment, Inc. to develop and deploy service-oriented architecture (SOA) solutions that allow Sony and its customers to better use all of its IT assets to advance their business goals. Based on industry best practices, the SOA solutions combine a set of best-of-breed technologies, tools, patterns and standards from Sony Pictures, TCS and BEA Systems to help enterprise organizations align business functions for greater flexibility and efficiency.
Sony Pictures and TCS have created a world class SOA framework that enables enterprise organizations to quickly sense and respond to changing market conditions. Centered on the deployment of reusable and network-aware applications, the SOA framework leverages key business assets within and beyond enterprise boundaries, with interoperability, independent of platforms, languages and protocols. The framework benefits enterprise organizations across various industry verticals including media & entertainment, insurance, banking, retail, financial services and manufacturing.
KNR Construction (KNR) designs, engineers, constructs and maintains roads. The company diversified into construction of irrigation and urban water supply projects in 2005. The execution of infrastructure projects requires significant amount of technical expertise and skill. Pre-qualification for bidding of such projects is often based on past experience of execution is not a problem though it can’t bid for mega construction projects which require minimum net worth criteria. (more…)
Bang Overseas Limited (BOL) is engaged in the manufacturing of fashion fabrics and meeting ready to wear requirements of its customers in the apparel, textile, and retail segment. The Company proposes to utilize the issue proceeds to augment its apparel manufacturing capacity and strengthen the distribution network. Post expansion, the manufacturing capacity will increase to 19.8 mn pieces p.a. and the number of retail outlets to 100.
BOL had negative cash flows in the past, owing to a high average debtors cycle and an unreasonable average inventory days. (more…)