India’s leading IT company Satyam Computer services is facing charges of Fraud by UPaid in a Patent Dispute involving hundreds of millions of dollars.Here is the sequence of events that has happened in the last 12 years with Upaid. (more…)
Year: 2008
Forthcoming Real Estate Projects from Mahindra Lifespace
Mahindra Lifespace is probably the only Developer who has witnessed higher selling prices even in areas like Delhi’s NCR where prices have fallen. We are in receipt of confirmed reports that in Faridabad, the company’s realisation actually increased to Rs4,000 psf from the launch price of Rs3,875 psf in Q4FY2008.
Project / City / Commencement
Mahindra Eminente Phase II Mumbai FY 2009
Mahindra Splendour Phase II Mumbai FY 2009
GE Gardens Mumbai FY 2009
Commercial Pimpri FY 2009
Sylvan County Chennai FY 2009
Residential Gurgaon FY 2010
Residential Nasik FY2010
Residential Nagpur FY 2009
We expect Mahindra Eminente to sell upwards of Rs 10,000 / sft based on previously sold prices of various Mahindra Lifespace Residential projects in India.
HSBC on Dabur India
In a report released just minutes ago, HSBC has reiterated its OVERWEIGHT rating on Dabur India. Dabur is one of the least expensive consumer stocks in India and trades at an 18% discount to peers on PEG basis. (more…)
Punjab National Bank – Review
Punjab National Bank (PNB) delivered Q4FY08 results, which were ahead of our expectations. The net profit rose 128.8%, whereas net interest income (NII) grew at 12.6%.PNB appears to have consolidated on its gains from 3Q08 and despite an aggressive loan growth, improved both margins and asset quality.
NIMs for the quarter were 366bps (up 10bps qoq) – a surprise and a contrast to most PSU bank peers. Margins could, however, come under some pressure due to aggressive loan growth (+18%qoq), and its relative disadvantage in a declining interest rate situation as its deposit repricing could be slower than peers.
PNB’s NPLs have declined 22% qoq – a combination of higher recoveries and little pressure from its relatively large agriculture portfolio (contrary to expectations). Loan loss provisioning was also lower (excl Rs1bn floating provision) and coverage levels jumped to an impressive 77%.
The bank reported an EPS of Rs 64.98 for FY08. EPS estimates for FY09 and FY10 are Rs 76.88 and Rs 91.20 respectively.
Morgan on Sesa Goa + Market Conviction
After Kotak Recommended a BUY on Sesa Goa, Morgan Stanley has also initiated coverage with a BUY recommendation. Sesa’s solid iron ore output growth. A change in sales mix from contract to spot market sales. The likelihood of above-consensus iron ore prices. These factors should support an EPS CAGR of 22% in F2008-10 for Sesa, which does not seem to be captured in the stock’s 7.5x P/E valuation. (more…)
Apollo Tyres – Slow Ride
Apollo Tyres’ Q4FY08 performance was higher than expected because of rise in margins. Net sales grew by 10% yoy to Rs10bn (our expectations of Rs10.3bn), with volumes growing by ~4%yoy to ~75,000MT. EBIDTA margins declined by 100bps qoq (higher 120bps yoy) at 12.4% and were above our expectations (11%) due to a better product mix and positive impact of price hikes. Net profit grew by 38.7%yoy to Rs 593m.
Going forward, expect 11% CAGR in consolidated revenues led by continued strength in replacement market sales and a partial recover in domestic T&B OEM segment. Despite the recent price hike of ~5% in the replacement market, we expect Apollo’s margins to come off by ~100bps from the present level due to sustained surge in prices of key raw materials like NR and crude based inputs.