Indian Equity Research and Investment Strategy
Bank of Baroda reported PAT growth of 61% YoY to INR10.2bn, mainly due to lower than expected credit costs. While loan and margin expansion was on expected lines, BoB surprised positively on its robust asset quality as against other PSU peers that have disappointed this quarter on this front.
BOB’s loans have expanded 30% yoy (well above industry), is fairly broad-based, (more…)
Cutting Edge Outsourced Software Development Company HCL Technologies reported Strong revenue growth yet again with revenues at US$ 804 mn (+9% QoQ ) beating est, however balanced with operating margins down ~230 bps QoQ, ~650 bps YoYn Apps/IMS continue to driven growth (9%QoQ). Rev from Europe were up 18% QoQ with finsvcs /telecom/retail seeing +10%/10%/13% QoQ. Strong Net adds(5k+) for 2nd qtr in a row.
While gross margin at 31.6% was 50bp higher than our estimate, SG&A, which (more…)
Biocon has entered into a global commercialization deal with Pfizer for its biosimilar insulins (incl analogs) pipeline viz. Recombinant Human Insulin, Glargine, Aspart & Lispro. Pfizer will pay Biocon US$200m upfront & US$150m by way of development & regulatory milestone payments in addition to manufacturing-related income & royalties on launch.
The upfront payment of $200mn translates into a per share value of Rs45 (pre-tax) for Biocon. Mgmt indicated that a meaningful (more…)
Even though Silicon Valley companies like Google and Apple beat Analysts forecasts by Teens Margins, Infosys and other IT Services Company suffer as they fail to innovate and are often struck at the point of inflection.
Infosys reported a 2Q with revenue growth of ~10% qoq to $1496m (our exp: $1464b). Cross currency boosted reported growth by ~1%. Volume growth was 7.2% qoq while onsite pricing witnessed a improvement of ~2.5% qoq. Offshore pricing was down ~0.4% (more…)
Industrial Production (IIP) growth decelerated to 5.6%YoY in August from 15.2%YoY in July (revised upwards from 13.8% YoY earlier) and 5.8%YoY in June 2010. One of the predominant factors in driving down growth was a sharp fall in the capital goods index (-2.6% Y-o- Y for Aug vs 72.0% Y-o-Y in July).
Amongst other components, the consumer non durables sector continued to be weak, although durable goods growth remains strong. Intermediate goods, which generally lead the headline index by 2-4 months and has been on a moderating trend, inched slightly (more…)
PTC India Ltd has evolved from a pure play power trading company into a diversified and integrated entity with businesses ranging from power trading, coal trading, power project development and project financing.
Edelweiss has a Fundamental BUY on the stock with the main reason being the company’s current 18 bn kWh power trading volume in FY10 is expected to catapult 150% by FY13E and triple by FY15E to 57 bn kWh. Additionally, PTC Management wants to list PTC (more…)