Indian Equity Research and Investment Strategy
Camson Bio Technologies is India’s first wholly integrated agriculture biotechnology company. Camson has a first mover advantage in certain product categories. Its future growth will depend on its ability to leverage the growth potential in replacing the chemical pesticides using the residue free platform.
Camson is all set to leverage all the hard work put in over the last one and half decade. A typical biocide research takes 9 – 12 (more…)
Cairn India (CIL) today increased its discovered Rajasthan resource base from 3.7 bn boe to 4.0 bn boe. While the 2.1 bn boe Fatehgarh formation (MBA fields) estimates have not been changed, estimates in 22 other fields (Barmer Hill formation) have been upgraded to 1.9 bn boe (1.71 bn boe earlier).
While the higher resource base is directionally positive, it requires significant work to establish new reserves in an increasingly (more…)
Educomp team is well placed to meet strong demand for Smart Class implementation. Educomp’s guidance of implementing Smart Class in 2500 (FY11) schools implies installing hardware in ~50 schools per week. As EduSmart outsource nearly 50% of low end installation work to local vendors and given its ability to manage hardware installation at multiple schools concurrently, we believe the current team of 70 technicians can manage installations in nearly 80 schools per week. See minimal risk to implementation in FY11e.
The initial response to Educomp & EduSmart Smart Class advertisement has been extremely strong with school signs up exceeding (more…)
Qatar oil ministry has agreed to supply additional 4 mtpa of LNG to India by 2013E. The supply is expected to be ramped up from 0.3 mtpa in CY2010E to 4 mtpa in CY2013E; this is in addition to the current supply of 7.5 mn tons of LNG to India. The petroleum
ministry has stated that a share of the additional LNG from Qatar will go to Petronet LNG and RGPPL’s yet-to-be-commissioned 5 mtpa LNG Dabhol terminal.
Linking of LNG price to crude oil may be negative for LNG importing companies given (1) speculation-driven volatility in crude oil prices (more…)
The Indian Grey Market for IPOs which went for a toss after Anil Ambani’s Reliance Power Ltd royal rip off of small investors is thriving back. After the 2005 IPO scam, none want to take chances. This time the system is designed so well, it is out of reach of SEBI because the big fish is not on any official record. (more…)
Welspun Gujarat, India’s leading pipe manufacturing company has announced the acquisition of MSK Projects (MSKP IN, not rated) – a construction company – for a consideration of INR8bn (75% stake). Synergies from this acquisition may include – diversification into the infrastructure sector, enhancing Welspun’s ability to provide its customers with end-to-end solutions to plate-pipe-pipeline laying; and MSK Projects through Welpsun’s balance sheet support likely to bid for large infrastructure projects specifically into the road sector. MSK’s current order book of INR5bn constitutes 40% road projects.
Here is the take from various brokerages on Welspun Gujarat’s Diversification move. Kotak analysts said there will be few orders where pipe (more…)