Deutsche Bank [DB] is underweight on Indian brokerage stocks [Emkay, Motilal Oswal, Geojit etc] especially Indiainfoline and Edelweiss where they have recommended a SELL. DB compares the premium P/E at which these stocks are quoting to their peers across Asia where they are all trading at discount. This is very different from exchanges, which are also turnover-dependent but trade at market premiums since they are oligopolistic businesses. (more…)
Year: 2008
JP Morgan – Latin America Equity Off-Shore Fund
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.
Infosys’ Axon Bid for Stronger Bottomline
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…)
Yo-Yo Markets + Range Bound – Credit Suisse
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…)
Change in Earnings + Price Target
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…)
NALCO – End of Commodity Boom ?
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.