Today we all Indians woke up to the Petrol Shock, highest since 1947 – A steep 10% Hike in petrol price. Most of you must be wondering when the Crude Oil Prices are relatively stable why do we have to pay an extra 10% for Petrol ? The answer is simple, the Bad Governance and Policies of Congress led UPA Government and we do not hesitate to directly hold Dr Manmohan Singh and Finance Minister Mr Pranab Mukherjee for this Shock. (more…)
Author: CP
FIIs India Equity Strategy – GAAR / Tax Issues / Policy Paralysis
After Deepak Parekh’s return from Singapore, many Indian brokerage houses sent their Equity Chiefs to Global Financial Centers – London, New York, etc to engage their Foreign Clients. Here is the outcome of the meeting of Equity Strategists on Indian Markets.
FIIs are still very interested in the India Growth Story, but are fed with the Policy Paralysis. Moreover, they can’t understand how the Indian petty political system can deliver (more…)
Samvardhana Motherson Finance Ltd – SMFL Review + Recommendations
Samvardhana Motherson Finance Ltd – SMFL is open for Subscription from Today until May-4th. WE are AVOIDING the IPO even though their is a Grey Market Price of Rs 2400 for a Rs 2 Lakh Application. Here are the various Views of Research Analysts who have studied the IPO.
At the lower end of the band, on a trailing basis, without considering the impact of the upcoming dilution, (more…)
TCS – InLine Results – Delivering Amidst Uncertainties
TCS reported 4QFY12 revenue of US$2.65bn, up 2.4% QoQ, in-line, and better
than -2% for Infosys. Consolidated volumes grew 3.3% QoQ. Rupee revenue at Rs133bn, and EBITDA margin at 29.5% were also in line with street expectations. Net profit at Rs28.9bn was higher than estimate led by higher forex gain of Rs1.1bn.
3.3% volume and 2.4% USD revenue growth (qoq) were stable and broad-based across major verticals, except BFSI. Pricing declined 97bp qoq. The new deals have come across (more…)
HCL Technologies on a Roll + Robust Deals – Re-Rating ?
HCL Technologies is the Second Best IT Stock on Dalal Street after TCS in the last 4 years. It has registered among the strongest growth in the sector over the past year or so and its relatively low-margin base also provides some cushion. The company reported consolidated revenue up by 2.5% qoq to US$1.05bn led by IMS (+5%) and BPO (+6%); software services grew a slower 1.5%. EBITDA margin at 18% (-13bp qoq). PAT up 5% qoq to Rs5.8bn.
This set of numbers should assuage some (more…)
CLSA Questions Infosys – The Worst Performing IT Stock in 4 Years
Sr. Technology Analyst Mr. Nimish Joshi of CLSA has written an Open Letter to Infosys CEO, Mr Shibulal. Open Letters are normally written when their is arrogance or refusal to accept by one party, as was the case between Dr Manmohan Singh and his Economic Adviser Dr Raghu Rajan.
In this case, we are not sure why Mr. Joshi chose this medium. He begins by saying that Infosys has been the worst performing IT stock in the last 4 years with mere returns of 54% compared to 137% by TCS. Further, Mr. Joshi raises 3 issues,
Loss of revenue and EBIT market share – Revenue Market Share has dropped 350 bps in the last 5 years. Infosys investors are worried about the adverse impact Infosys’ current (more…)