Indian Equity Research and Investment Strategy
NHPC the Green Energy producing company is on the eyes of stock analysts now. Analysts at BNP Paribas have started covering the company’s Carbon Credit Story which we had told during the time of its IPO.
Unlike Dirty Energy companies like – Reliance Power, Adani / IndiaBulls Power, NHPC projects are allowed to sell Carbon Emission Rights (more…)
SpiceJet highlighted how improving economic indicators has led to reversal in trends of domestic passenger traffic, and hoped momentum will sustain.
SpiceJet believes that recovery will favour low cost carriers (LCCs), which has already seen increase in share to ~30% share (up from 20% a year ago). Also, carriers such as SpiceJet have already returned to profitability due to relatively lower cost/ASKs, thanks to more seats/aircraft and lower distribution expenses. (more…)
Before we review the prospects of IndiaBulls Power, we would like to know what is the basis on which SEBI clears these IPOs. Power projects are Long Gestation Projects and not Dot Com Businesses which can start making money immediately [They never made either ;-).
IndiaBulls Power Ltd – IPL IPO Review and Recommendation:
IPL will have a combined installed capacity of 6,615MW in Maharashtra and Chhattisgarh post the completion of these projects with lot more projects in the evaluation stage, all of (more…)
Time for some self praise today. We have been recommending HDFC Funds for investors since long time on here. HDFC Top 200, Equity , Prudence and Tax Saver NAVs are near their Jan-2008, peak when the Index was 21,000. This means Sr. Fund Manager and CIO – Prashant Jain has managed to beat the index by 23%. [NAVS are at new peak when SENSEX ~17,000, instead of hitting the target @ 21,000]
Reliance Growth Fund which we have recommended has been market performer as its all time High NAV is still 20% away from current levels. However, note that this fund takes some serious exposure to midcaps and will perform better in bull market than in a fall & subsequent rise. So stay invested. (more…)
Infosys reported 1.2% revenue growth QoQ in constant currency, which was below our/street expectations. Revenue upsides were essential to drive FY11 upgrades and lack of the same is a disappointment, in our view. Next quarter guidance (flattish) builds in no “year-end budget flush” – one can argue that (as usual) it is conservative.
Margins improved another ~50bps sequentially, which was the key reason for EPS beat (vs. our estimates). Infosys has managed margins very well through the downturn and 2Q margins are a 7-year high (34.6% EBITDA margins in 2Q).
Management sounded more positive than the recent past and expects flattish to a marginal increase in 2010 IT budgets. However, they don’t expect a budget flush which results in a flattish 3Q guidance. Pricing renegotiation are largely over.
Analysts expect full year EPS of Rs 103.96 for FY10 and Rs 110 for FY11. With INR getting stronger Vs the USD, Investors CAN Book Profits in the counter and take exposure to Indian Inclusive Growth Story Stocks. The days of HOLDING Infosys Fad is behind us 🙂
This is the second part of two post series. In the first part we have already covered what happens if RNRL Loses the Court Case against RIL. In this post we shall cover what will happen to RNRL stock price on the company winning the case.
Scenario II – RNRL wins the court case
There can be four scenarios on this front.
Scenario A: (No opportunity loss on gas availability and Marketing Margins in line with GAIL- US $0.135/mmbtu) (more…)