Indian Equity Research and Investment Strategy
Almost all the broking house say that the Discount on IRB Infra is unwarranted. The stock is down its from its peak of INR 313 in Aug 2010; more importantly, the stock has corrected ~25% in the last month.
The main reason for correction – Slowdown in NHAI project award since May 2010 and Delay in start of execution in the 4 projects won last year – While execution was expected to begin on all projects in Q1FY11, it eventually started on 2 projects in Q2FY11 and (more…)
Leading FII BNP Paribas has downgraded the Indian Power Sector to Negative citing Overcapacity in 2013. India is set to see an unprecedented power generation capacity addition. Can we expect India to enter a slight base-load surplus in FY12, worsening to 16% in FY13 ?
Research indicates a market-clearing price of INR4/kWh, assuming that a majority of thermal power plants operate at 70% utilisation rates. An IPP can improve utilization rates only by pricing its output at (more…)
Are investment bankers the Worst people when weighed on the scale of Ethics ? Guess the Collapse of Wall Street in 2008 and recent Loan Scam has ample evidence to prove the same.
Money Matters Financial Service – MOMF has a questionable history, window dressed by broking firm IIFL. MOMF bought Dover Securities, listed on BSE, and reverse-merged with Dover Securities. Under the guidance of IIFL, MOMF did a QIP Placement to Goldman Sachs, Morgan Stanley and other FIIs at Rs 625 raising around Rs 400 Cr.
The Unanswered Questions:
How come none of the Institutions questioned the Business practice of MOMF ? Were they all too blind or were (more…)
I have read lot of reviews on MOIL. However, the first and foremost is the basic industry in which MOIL operates. It is Manganese and the scope of this is not as huge as Iron Ore and is very small. However, MOIL has a 45% market share in India.
MOIL is a Debt Free company with Rs 105 Cash / Share on its balance sheet. The financials of MOIL are discussed here. I would like to make some guesstimates on the subscription taking (more…)
It is unbelievable that the Government headed by Dr Manmohan Singh can be the most corrupt government in the History of Independent India. I don’t think I have to prove this in the court of law, but everybody agrees with me. A word of caution as I read a report from a leading FII with massive interest in Indian market which states,
As the demand for land has increased since the 1990s, so has the level of corruption. Issues over land acquisition have (more…)
Hours away from Diwali 2010 Mauhurat trading and the Nations Economic baromete measured by BSE Sensex and NSE Nifty closing at lifetime highs, we quickly ran a scan on the biggest wealth creators and destroyers in the Bust and the Boom cycle and Reliance Anil Dhirubhai Ambani – Reliance ADAG Group is crowned as the Biggest wealth Destroyer. RNRL, Reliance (more…)