Indian Equity Research and Investment Strategy
Lupin’s Recurring PAT was in line at Rs2.2bn (+39% YoY), driven by Antara & generic Lotrel sales in the US. Sales grew 24% YoY on the back of 18% higher formulation sales in advanced markets. EBITDA margin expanded 173 bps, despite higher R&D spend, on improved product mix (higher branded sales & generic Lotrel).
US formulations (+ 28% YoY) grew on the back of generic Lotrel launch & first full quarter of Antara sales while Japan (+18% YoY) (more…)
ICICI Bank may consider acquiring Bank of Rajasthan (BoR), whose promoters are being pushed by the Reserve Bank of India (RBI) to offload their stake. If the deal were to go through, then what are the synergies and over lapses, lets analyze – ICICI Bank’s 2,000 branch network would be complemented by BoR’s 463 branch network. Of these 463 branches 102 branches are in rural areas, 90 branches are in semi-urban areas and 142 branches are in urban areas. (more…)
We have already written on how FIIs have increased their exposure to Indian Equities. Mutual Funds and Insurance companies are OW on Staples and Utilities, UW on Energy and IT Services. MFs and Insurance have meaningful opposite view and positioning on Financials, Industrials, Materials and Healthcare.
MF Ownership – Mar-10 quarter did not witness any big shifts in the sector weights. Largest overweight position of Mutual funds were maintained in Industrials (+869bps) and Staples (+286bps). On the other hand, the biggest sector under weights were Financials (-449bps), Energy (-366bps), Materials (- 327bps) and (more…)
FII Ownership in Indian Equities has been rising and has touched 22.2% in SENSEX and 16.9% in BSE 500 [Overall Market] FII ownership has seen the most significant move up since the Mar-09 low of 14.8% [BSE 500]. They hold 18.9% of BSE100 and 17.7% of BSE200.
FII Portfolio Reshuffle in March Quarter FIIs have had an outsized overweight on Indian Financials (800-1000bps) since early 2009. Mar-10 quarter was the first time that we saw a significant decline of 382bps and the overweight is now at more (more…)
IRB reported Q4 revenues of Rs5bn (+56% y/y, +16% q/q, UBS est Rs5.8bn), EBITDA of Rs2.3bn (+92% y/y, +2% q/q, UBS est of Rs2.3bn) and PAT of Rs1.4bn (+236% y/y, +55% q/q, UBS est Rs1.1bn). Lower-than-expected toll revenues were compensated by higher construction margins. Higher reported PAT is due to accounting for MAT credit (Q4 tax is a positive Rs393m; PBT is Rs1.1bn; this credit will be (more…)
Indian hospital stocks have outperformed the market in the past six months (up 60% vs. 17% for Sensex) on the back of newsflow on acquisitions and a better-than-expected earnings profile for the sector. The long-term growth story still looks attractive, with demand outstripping supply however, in the near term valuations have overtaken fundamentals. Lets look into Apollo Hospitals and Fortis Helathcare stocks for Long Term Investment.
Apollo Hospitals:
Apart from the current 2,120 beds being added, Apollo has no immediate plans for fresh projects. We believe that with most of its (more…)