Indian Equity Research and Investment Strategy
Coromandel is the largest domestic manufacturer of phosphatic fertilisers among private players. It has manufacturing units in Andhra Pradesh and Tamil Nadu. Apart from farm inputs comprising fertilisers, pesticides and specialty nutrients, the company also entered the rural retail business in Andhra Pradesh through its Mana Gromor Centres and Mithra centres.
The company also entered into a licence agreement with Shell Research Ltd. for manufacturing sulphur (more…)
The FY 2012 Central Budget has not done anything dramatically. It provides incentives to increased infrastructure spending along with increased funding sources, highlights supply side issues in agriculture with an effort to provide solutions.
In the Union Budget for FY12, the government announced a reduction in the fiscal deficit to 4.6% of GDP from an estimated 5.1% in FY11, without any new tax revenue measures. However, it will be difficult for the deficit targets to be met given that it is based (more…)
The Indian Stock Market has witnessed 2 Big Bull Phases – Dec-2008 to Jan 2000 and April-2003 to Dec-2007. Our first investment advise came out in Dec-2003, the second phase of the Bull Run. Now are we in the third phase of bull run ? or are we headed for a short term bear market etc are the questions that run on your mind. Irrespective of how global equities behave, you can create wealth in Indian equities.
We have discussed how a 10 to 15 year SIP has already yielded ~30% Compounded returns. However, this time around I am advising investors who can invest in Lumpsum to take advantage of the on-going correction. However, your SIPs should still continue after (more…)
ICICI Bank Net profit of Rs14.4bn (up 30% y/y, 16% q/q) beat expectations due to lower loan loss provisions (LLP). NII of Rs23.1bn (up 12%y/y, 5%q/q) was driven by flat sequential NIM at 2.6% and 15% y/y loan growth. Corporate loans supported loans growth while retail book stayed flat.
Core fee income grew at 14%y/y, 2%q/q. Credit cost declined 54% y/y, 28% q/q to 1%. We believe margins (more…)
BHEL reported 3QFY11 net sales of Rs88.5bn up 25% YoY, EBITDA margins of 21.4% up 126bps YoY, and PAT of Rs14bn up 31% YoY. Adjusting for the change in accounting, Adj. PAT at Rs13.4bn was up 25% YoY, 10% ahead of CIRA and 4% ahead of consensus.
Quality of earnings was better with 21% fall in treasury (more…)
Larsen & Toubro’s (L&T) Q3FY11 PAT, at Rs 8.1 bn, driven by strong execution in the E&C segment. Robust revenue growth of 41% YoY reinforces confidence in execution of strong order book of Rs 1,149 bn. Margins have dipped YoY by 150 bps to 10.8%, but this is more a qtly fluctuation than a trend. While revenue guidance has been maintained (20% YoY growth in FY11E), mgmt has highlighted that order flow guidance (25% YoY growth) could be at risk due to deferment of orders to FY12E.
L&T removed order for IT parks of ~Rs20bn from Godrej & Arun Excello on lack of progress. Led by delay of orders from power (more…)