Indian Equity Research and Investment Strategy
Ahead of RBI’s monetary policy on Friday, 29 Jan, the domestic Macro scenario has improved with industrial production at 10-11% growth, inflation with the Dec reading crossing the RBI’s Mar 10 target of 6.5% and Loan growth returning to the double-digit range.
The street expects the RBI to begin normalizing rates with a (more…)
ICICI Bank Ltd has announced the following Audited results for the quarter ended December 31, 2009:
The Bank has posted a net profit of Rs 11010.60 million for the quarter ended December 31, 2009 as compared to Rs 12721.50 million for the quarter ended December 31, 2008. Total Income has decreased from Rs 103506.20 million for the quarter ended December 31, 2008 to Rs 77627.10 million for the quarter ended December 31, 2009.
The Group has posted a net profit of Rs 11486.60 million for the quarter ended December 31, 2009 as compared to Rs 15597.60 million for the quarter ended December 31, 2008. Total Income has decreased from Rs 169227.30 million for the quarter ended December 31, 2008 to Rs 141768.40 million for the quarter ended December 31, 2009.
Larsen & Toubro Ltd (L&T) has announced the following Unaudited results for the quarter ended December 31, 2009:
The Company has posted a profit after tax of Rs 7588.20 million for the quarter ended December 31, 2009 as compared to Rs 15204.40 million for the quarter ended December 31, 2008. Total Income has decreased from Rs 89243.20 million for the quarter ended December 31, 2008 to Rs 83557.50 million for the quarter ended December 31, 2009.
India’s Central Electricity Regulatory Commission (CERC) has announced changes to power trading margins. CERC, the power regulator, allows trading margin to be raised by c75% to INR0.07/kwh if sale price exceeds INR3/kwh (c80% of short-term volume).
The margin cap increase is a short- to medium-term positive for power trading companies like PTC India, which now can charge a higher margin for short-term trades. As 80% of PTC’s short-term (ex-cross border) trading volume is above INR3/kWh, it will benefit.
But increased competition from peers and power exchanges should limit the benefit longer term, when the trading margin should be lower than the prescribed cap. Further expect competition to get more intense and margins to fall again, because a) the supply of shortterm power is expected to increase at a faster pace than demand, and b) the number of power traders is expected to increase to 50-55 from the current 44. More important, the power exchanges, which charge only INR0.01/kWh, will also likely emerge as a preferred platform for short-term trading and limit the ability to charge higher margins
Total AUM at INR 7.75 tn; assets worth INR 1.47 tn added in October with mere INR 1.92 tn Equity AUM; dipped INR 0.10 tn (down 5%) M-o-M. The ratio of large-cap AUMs to mid-cap AUMs was at 0.83 in October versus 0.85 in September.
Large-cap funds have increased exposure to banking, FMCG, (more…)
Tata Communications has risen to an extent that it no more deserves the valuation it is trading at, while MTNL appears inexpensive but no visibility on potential re-rating and hence Goldman sachs has initiated coverage on the stock with a SELL Call. Aditionally, their weaker competitive positioning in the Indian telco space and Tata’s not coming with a blue print to merge Telecom operations is a cause of concern. (more…)
The markets is no mood to correct and Bulls have taken total control of the same. Here is Nomura’s Expectations from Indian Equities for 2010.
Growth: The 2H FY09 (fiscal year-ending 31 March, 2009) saw demand reeled in. Expect better growth in FY11F, underpinned by a turn in the investment cycle. Firm signs of a demand recovery are evident. Capacity shortages that had been masked by absent demand are now back to the fore, creating conditions for a capex revival. (more…)