Indian Equity Research and Investment Strategy
Diamond Cables’ conductor division has e-mailed us that the company is in receipt of order from India’s two larger EPC contracting firm for manufacture and supply of transmission and distribution conductors aggregating 5447 kms valued at Rs 800 million.
Ansal Properties and Infrastructure Ltd has informed that the Uttar Pradesh (UP) government has doubled its project size from an earlier approved 2500 acres to 5000 acres. The total investment is tipped to be around Rs 21000 crore
Transformers and Rectifiers Ltd (TRL) is one of the major players in the Indian market manufacturing power generation transformers, transmission and distribution (T&D) transformers, industrial transformers and a range of specialty transformers. TRL is setting up a new plant in Moraiya, near Ahmedabad with an installed capacity of ~16,000MVA. The plant is expected to come on stream during 2008-2009. (more…)
Godawari Power and Ispat Ltd [GPIL] completed its second phase of expansion. With this the company increased its capacity of sponge iron to 495,000 tpa (110%yoy), steel billets to 400,000 tpa (60%yoy) and HB wire rod to 120,000 tpa (90%yoy). With demand expected to remain strong in the next two years, expect GPIL’s output to register 66.1% CAGR for sponge iron, 30.5% CAGR for billets, 26.7% CAGR for HB wires and 17.5% CAGR for ferro alloys over FY07-09. (more…)
Satyam group company, Maytas Infra has signed a MOU with Vedanta Alumina for developing an integrated township for its staff in Jharsuguda, Orissa. The project has a total built up area of 14 lakh sq ft which Will be competed in 18 months and the value of the contract is 232.69 crore.
Vedanta Alumina has selected Maytas infra to develop the residential township for its staff based in Jharsuguda where in the scope of work for Maytas will include constructing the township on an EPC basis including site grading, designing of buildings and their construction etc.
The proposed township will include infrastructure facilities like roads, sewage, water treatment plant, Transit accommodation and Bungalows for top management of VAL, 2 BHK, 3 BHK and studio flats, guest house, hostel, open air theatre, dispensary, market complex, school, ancillary building etc spread over a build up area of 14 lakh sq ft.
Goldiam International informed us in a fax message that the development Commissioner, Santacruz Electronics Export Processing Zone (SEEPZ) special economic zone (SEZ) has granted permission to the company for setting up a trading unit in Andheri (E), Mumbai.
The approval granted is for trading in diamonds, cut & polished diamonds, precious stones, C&P precious and semi-precious stones, synthetic stones, pearls, alloys, plain & studded gold jewellery, plain & studded silver jewellery, labels, findings (gold/silver/platinum), mountings (gold/silver/platinum), stainless steel jewellery studded with diamonds and precious stones.
Century Plyboards India will hold a board meeting on 18 December 2007 to consider split of existing equity shares issued by the company from Rs 10 denomination to Re 1 denomination.
All the fund houses are raising money as if there is no tomorrow. Well the problem is tomorrow AMFI is changing the rules of the game. Yes, AMFI will not allow the initial NFO load of 5-6% which the Fund houses amortize on investors beginning from Jan-2008.
JM Agri and Infra Fund: [JAIF]
This is a fund launched by the house of JM Mutual Fund. The investment objective of JAIF is to provide long-term growth by investing predominantly in equity / equity related instruments of companies that focus on agriculture and infrastructure development of India.
JAIF will not have any market capitalisation restrictions, such that the investments will be across market cap range. The agri and infra related sectors account for 62% of the the BSE Market Cap. The portfolio of the scheme will be diversified with 25-30 stocks and may also invest in unlisted securities to a maximum of 10% of the assets while the scheme is close-ended. The share of the 2 sectors will generally be split 50:50. However, based on relative valuations, the mix can move between 30-70%.
The fund will be managed by Mr. Sandip Sabharwal, erstwhile SBI Fund Manager chargesheeted in the Ketan Parekh Security Scam. Mr. Sandip is an alumnus of IIT and IIM, Bangalore.
The NFO is open for subscription and will close on 18/12/2007. We recommend investors with VERY HIGH RISK appetite to subscribe. Value investors can continue with the SIP model of investment.