HDFC Fund Review – FY2008

We have been recommending investing in HDFC Funds. It is time that we presented the performance review for FY-2008. As you all know about the correction that happened in Global market didn’t spare Dalal Street as well 🙂

HDFC Equity Fund:
The fund has delivered 23.60% returns for investors since inception. However, SIP investors continue to make merry by fetching returns of 32.30% as on March-08.

HDFC Top 200 Fund:
This fund is rated 5 stars [*****] and is one of the best performing funds in India. Benchmarked against BSE 200, the fund has been consistently beating the benchmark delivering solid returns for investors. Top-200 fund has given returns of 27.35% since inception for original investors. While SIP investors have made 30.86%.

HDFC Tax Saver Fund:
This fund has also performed consistently delivering unbelievable returns of 35.48% for lump sum investors who invested in NFO and 38.99% for SIP investors. In addition to this, your investment would have qualified for Section 80CC Income Tax benefit.

HDFC Long Term Advantage Fund:
This fund is the youngest from the HDFC stable on which we have a recommendation. Lumpsum NFO investors made 36.65% while SIP investors made 39.27%. This fund qualifies for IT benefits under 80CC.

HSBC Equity Fund:
We are initiating coverage on HSBC Equity Fund with a SIP subscribe recommendation. We haver eviewed the performance of this fund for the past 5 years and fully satisfied by the performance and portfolio along with the process the fund house follows. [process is very important in the event of Turmoil in the markets]

HSBC Equity fund has delivered 52.09% returns since inception and SIP investors stand to gain by 42.93%. This is the youngest fund in our recommendation list.

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Chambal Fertiliser + Coromandel Fertilisers Coverage

Fertiliser stocks have been in the news for a while. Much of this has to do with hardening global food grain and fertilizer prices, which have brought the spotlight on Indian fertiliser stocks.Fertiliser consumption to grow at 4% CAGR FY 07 – 12E. Growing at 4% p.a. Low capacity additions expected to lead to a deficit of 5~6 mtpa till FY11E. Firming international prices of fertilizers, making imports an expensive proposition. Positive view on select commodities like Soda ash & Acetic Acid.

Chambal Fertilizers: CFCL has been operating at over 100% capacity for last 4 years. We expect the capacity utilisation to marginally improve and production to compound 2% during FY07-FY10E. (more…)

JP Morgan neutral on Aztecsoft

Revenues grew 8% Q/Q in US$ terms with a 4.6% Q/Q increase in EBITDA margins from a low base in 3Q FY08. However, Aztecsoft reported a foreign exchange loss of Rs42MM during the quarter leading to net profit of Rs32MM, below our expectations.

Management indicated a 25-28% Y/Y US$ revenue growth in FY09 led by a strong rampup in newly added clients. JP Morgan revenue estimates in line with management guidance, and now expect a 25% revenue CAGR over FY08-FY10E as against 30% earlier. (more…)

Suzlon Energy secures orders

Suzlon Energy (Tianjin), a wholly owned subsidiary of Suzlon Energy has secured orders totaling nearly 200 MW of capacity for wind farm projects in the P.R. China.

The first order from Ao Lu Jia New Energy Development, calls for the delivery of 148.5 MW of wind turbine capacity through 99 units of the S82 – 1.5 MW turbines for use in three wind farms. Deliveries for the first wind farm are scheduled for shipment during the second quarter of financial year 2008-2009.

Whereas the second order from Beifang Longyuan (North Union) calls for the delivery of 50 MW of wind turbine capacity through 40 units of the S64 – 1.25 MW turbines, scheduled for delivery in the first quarter of financial year 2009-2010.

Virat Crane to demerge its real estate business

Virat Crane Industries has obtained the in-principle approval of the exchange for the demerger of its real estate / infrastructure division into Crane Infrastructure and amalgamation / merger of Durga Dairy with Virat Crane Industries.

The demerger scheme envisages a share issuance of 1 shares of demerged entity namely Crane Infrastructure for every 1 share held by the existing shareholders of the company.

The demerger of real estate / infrastructure division and amalgamation / merger of Durga Dairy with the vompany will take effect after obtaining the order of Honorable High Court of Andhra Pradesh, Hyderabad. The company has initiated the process with reference to the court approval.

Wipro appoints joint CEOs for IT business

Wipro announced changes in the management structure of its IT business and expansion of its board of directors.

Girish Paranjpe, Suresh Senapaty and Suresh Vaswani have been appointed to the board of Wipro. Wipro also re-structured its IT business by appointing Girish Paranjpe and Suresh Vaswani as joint-CEOs.

Girish Paranjpe has been with Wipro since 1990 and has transitioned from leadership roles in the finance function to business leadership roles. Most recently he was the president of the banking, financial services and insurance business unit of the global IT business of Wipro.

Suresh Vaswani has been with Wipro since 1985. Over this period he has held multiple leadership positions, and was most recently president of Wipro Infotech (the India, Middle East and APAC IT business of Wipro) and of global practices (EAS, Testing & TIS).