Indian Equity Research and Investment Strategy
We have just received reports that Bharat Heavy Electricals Limited and the Nuclear Power Corporation of India Limited is likely to form a 50:50 JV for manufacturing nuclear reactors. As per report, the board of directors of BHEL and NPCIL has given consent for the proposed JV.
The new JV will produce reactors of 700 MW and 1,000 MW for nuclear power projects and the initial investment is estimated to be around INR 500 crore
Sathavahana Ispat (SIL), a standalone pig iron manufacturer with capacity of 210,000 TPA is stepping ahead as an integrated pig iron producer. It has commissioned 300,000 TPA of metallurgical coke and is on the verge of completing a 30 MW waste heat based power plant.
The company is setting up 30 MW cogen power plant. As it is waste heat based, cost of power generation is a meager Rs.1.2 per unit against selling price of Rs.3 per unit, representing (more…)
Jindal Saw has received various orders aggregating to approximately US$ 250 million for supply of spiral pipes / longitudinal submerged arc welded (LSAW) pipes and seamless pipes.
The company has, inter received the prestigious order of (a) app. US$ 80 million from Saudi Aramco, Saudi Arabia for supply of spiral pipes which shall be supplied in 2008 (b) order of app. US $ 40 million from Iraq for supply of seamless pipes and order of more than US $ 95 million from Abu Dhabi Government-owned International Petroleum Investment Co (IPIC).
Abu Dhabi has awarded an order of aggregate value of US$ 460 million for pipe supply to the company, besides Japan’s Sumitomo and Germany’s Salzgitter for the balance portion. The company is the only Indian company which has been considered for and awarded this order. With these orders, the company’s present order book exceeds US$ 850 million. These orders are scheduled to be completed by January 2009
ABN Amro in a report released minutes ago has advised to Book Profits in Canara Bank as the bank struggles with lower operating margins than its peers. Poor core fee income and rising loan loss provisions are unlikely to help the bank’s cause.
Can Bank will witness a higher increase than its peers in the average cost of interest-bearing liabilities in FY08 from FY07. The small proportion of low-cost deposits is also a key reason for the relatively high cost of Can Bank funds. We expect low-cost deposit ratios to fall to 30.4% by March 2008 from 31.5% in March 2007. (more…)
Religare has initiated coverage on Gremach Infrastructure with a BUY rating. Engaged in the business of leasing out construction and mining equipment. Strong government thrust on infrastructure development coupled with Gremach’s timely equipment acquisition (capex of Rs 1.3bn) will drive a revenue CAGR of 62% CAGR over FY07-FY09. Aggressive forays into onshore oil rig rentals, SEZ development and coal mining would fuel the next phase of growth for the company. (more…)
Anlaysts on the street are still in love with lost love – Indian IT Companies. Here is the consensus estimates. Kindly note that the future of these stocks will depend on the Guidance for the next quarter and year.
Infosys Technologies:
Results will be announced on Jan-11th.
Consensus Estimate for Q3FY08- Revenues of 4331.4 cr 5.5%[qoq] 18.5[YoY] Net Profit of Rs 1172.8 EPS of Rs (more…)