RCom vs Bharti Airtel

Reliance Communications and Bharti Airtel both reported their Q2 numbers and here is a brief comparison on the same.

RCom reported 2Q FY09 net profit at Rs15.3bn, up 17% YoY and flat QoQ; reported results were boosted by ~Rs919mn of one-time income from FLAG arbitration. Adjusting for this, RCom’s EBITDA margin fell ~250bps QoQ to 39.8%.

High debt levels (~70% of which is forex debt), possible pressure on EBITDA margins from network expansion and increasing competitive risks in the Indian telecom sector remain key risks in our view. The Co continues to capitalize (MTM) losses (~Rs23bn) on its forex exposure. (more…)

Aditya Birla Nuvo – Slower Growth Ahead

Aditya Birla Nuvo’s 2Q FY09 net loss stood at Rs1.05bn, vs loss of Rs283mn in 1Q 09. going forward in FY09, the company is expected to report a Loss.

Pending promoter warrants imply ~Rs34bn (~50% of standalone FY08 capital employed) of potential cash infusion for the Co. The warrants are live until Aug ’09 but we see low likelihood of subscription as the exercise price of Rs2007/sh is ~4-5x current sh. price. In the absence of promoter funding, we expect the capex & growth plans to be scaled back (partly factored into life-insurance assumptions).

ABNL has a 25% stake in Idea Cellular which yields to Rs 530 / share of ABNL pro-rated. ABNL’s financial services business is valued at an enterprise value of Rs686/sh (down 30% vs earlier SoP). Enterprise value of ABNL’s remaining businesses stands at Rs431/sh. Net Debt is at Rs 773 / share as we no longer expect the Birla Group management to subscribe to Warrants at 4 times the CMP.

NTPC – Can Growth Last ?

NTPC reported F2Q09 revenue of Rs94.5 bn (up 27% YoY) and earnings of Rs21 bn (up 10% YoY). Adjusted earnings in F2Q09 were Rs18.3 bn (up 12% YoY). The company commercialized 500 MW of Kahalgaon II during the quarter.

2QFY09 recurring PAT at Rs17.4bn (down 6% YoY) was in line with CIR estimates. Reported PAT was higher at Rs21.1bn (up 13% YoY) led by exceptional items. Earnings are under pressure due to Significant delays in incremental capacity additions and Marginal negative impact (2-3%) of new CERC draft regulations from FY10E onwards.
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Glenmark Pharma

Glenmark’s 2Q PAT (Rs1.18bn) came in 5% ahead of MLe driven by strong 50% topline growth and stable 30%+ EBITDA margin. US generics business grew sharply by 117% whereas Latam and RoW markets growth is back on track. Revise core earnings estimates by 8-9% to reflect lower margins.

With 35 products in market, US generics business grew 117% YoY (Rs1.76bn) leading to overall generics business growth of 86%. Impact of new launches (out of 40 ANDAs pending approval) is likely to reflect in the next few qtrs. Latam and SRM markets bounced back after a weak 1Q and are expected to show strong growth going forward. Domestic business growth is robust at 17% (vs industry grwth of 11% and guidance of 15%). Milestone guidance maintained for FY09E.

Fully Diluted EPS is expected to be Rs 30 for FY09.

Companies List with Stock Price Less Than Cash / Share on Books

We are presenting to you the list of companies from BSE-500 which are quoting below the Cash Price / Share in the Books of Accounts.

Company Name Stock Price Cash/Share
Aftek Ltd. 16 32.43
Allahabad Bank 53.1 157.65
Alok Industries Ltd. 17.75 86.56
Andhra Bank 51.15 117.41
Bank Of Baroda 273.55 636.08
Bank Of India 256.45 338.95
Bank Of Maharashtra 27.35 98.16
Bharati Shipyard Ltd. 79.45 82.33
Canara Bank 174.05 442.04
Central Bank Of India 40.25 317.70
Corporation Bank 227.2 621.57
Federal Bank Ltd. 150.75 160.31
Gitanjali Gems Ltd. 105.3 132.02
Hinduja Ventures Ltd. 109.55 145.49
I C I C I Bank Ltd. 365.55 407.17
I D B I Bank Ltd. 68.3 121.26
I F C I Ltd. 22.95 45.67
I N G Vysya Bank Ltd. 180.65 310.66
I V R Prime Urban Developers Ltd. 47.25 56.10
Indiabulls Financial Services Ltd. 106.8 284.25
Indiabulls Securities Ltd. 26.05 42.90
Indian Bank 135.5 157.60
Mercator Lines Ltd. 33.3 36.15
Prithvi Information Solutions Ltd. 38.5 120.49
Punjab National Bank 473.1 609.82
Ruchi Soya Inds. Ltd. 40.75 50.82
State Bank Of India 1324.3 1,402.29
Syndicate Bank 60.1 223.33
Vijaya Bank 31.5 37.25

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