Indian Equity Research and Investment Strategy
SBI Caps has initiated coverage on Varun Shipping and Ahluwalia Contracts with a BUY recommendation.
Varun Shipping:
Varun Shipping Ltd. (VSL) is the largest hydrocarbon shipping company is a serious player in the area of shipping energy in the country. Given its prominent presence in this niche segment, where charter rates are less volatile, coupled with its fleet expansion and foray into the lucrative offshore segment, we expect Varun to register 15% revenue CAGR over FY07-FY10. (more…)
Details of the Reliance Power IPO as obtained from our sources in BRLM.
Issue opens on: January 15, 2008
Issue closes on: January 18, 2008
Price Band: Rs. 405 to Rs. 450 per equity share.
Issue Size: 130 crore equity shares of Rs.10 each, by 100% book built issue. This size is 11.5% of the total equity of 1,130 crore equity shares.
Promoters’ Contribution: 16 crore equity shares of Rs.2 each to be subscribed by the Promoters at the same price as being offered to the public. Reliance Energy Ltd. (RIL) and AAA Projects Ventures Pvt. Ltd. (AAA) being the joint promoters would be subscribing 8 crore equity shares of Rs.2, each. (more…)
It is always advisable to withdraw some money from the market. Kotak Securities is advising investors to nook profits in GATI and Citi is advising clients to take money off of Hindustan Constructions. The basic reason behind these two ratings is the run up of the stock in short span and prices prevailing above their targets.
Kotak on GATI:
GATI has acquired 73.7% stake in Delhi-based cold chain logistics firm Kausar India (Kausar). Initially it acquired 52.96% stake in the company. Subsequently it came out with an open offer as per SEBI regulation and acquired another 20.76% @ Rs. 72.84 per share. As of now earnings estimates for GATI is EPS of Rs. 4.6 for FY08E and Rs. 6.7 for FY09E. (more…)
Sonata Software has announced that TUI InfoTec GmbH, Germany, a joint venture between Sonata Software, India and TUI AG, Germany has gained a new client (i.e. LYCOS Europe) outside of TUI group. From February 2008 LYCOS Europe, one of the continent’s leading providers of Internet portals and online advertising, will be using TUI InfoTec as its outsourcing partner for its office IT operations. Migration of the existing set-up to an MPLS network is due to begin this month.
As part of another contract TUI InfoTec has already been looking after LYCOS Europe local area and international WAN networks since 01 December 2007. TUI InfoTec successfully beat off several competitors in the selection process.
Reliance Capital operated AMC, Reliance Mutual Fund of ADAG has launched the first Natural Resources Fund in India. As obtained from the AMC, the objective of the fund is to invest 65-100% in Indian Equities and/or upto 35% in Foreign Equities. The sectors in which the fund is planning to take exposure are as follows,
The Fund will be benchmarked against BSE-200 and MSCI World Energy Index. It is an open ended fund and new fund offering closes on Jan-30th. Minimum investment is Rs 5,000.
Anil Ambani has finally made it public about his IT Consulting ambitions. Fueled with synergies from RCom + Yipes, Anil Ambani has hand picked a team of 15 professionals to scale the IT business.
The company will operate in the domains of consultancy, infrastructure management, application development, management and domestic SME market.
With falling dollar and margins under heavy pressure, Sr executives at Infosys, TCS and Satyam are already looking towards Anil Ambani’s Tech Reliance to make their last Stock Options bounty. Hyderabad, Kolkata, Mumbai and Gurgaon IT centers will open for business within the next 6 weeks.