Indian Equity Research and Investment Strategy
Asian Oilfield has informed us that the company has won two orders, the first valued at Rs 44.55 crore is from ONGC Jorhat office for acquisition of 2D Seismic Data in Nagaland. The project is to be executed within 400 operating days.
The other contract valued at Rs 15.17 crore from ONGC Baroda office is for providing integrated seismic job services & shot hole drilling services. The work on this project will start in December 2007 and will continue for field season 2007-08 & 2008-09.
India derives more than 37% of its primary energy requirements from hydrocarbons (crude oil and natural gas). Of the 165 blocks offered in the six rounds of NELP, 102 have been offshore blocks. This offering has resulted in a huge capital expenditure planned for the offshore segment.
Garware Offshore Services Ltd (GOSL) currently has four Anchor Handling Tugs – cum – Supply Vessels (AHTSV) and three Platform Supply Vessels (PSV). Further, it has embarked upon an aggressive capex plan to acquire two PSVs, two 60-T AHTSVs and one construction barge (on lease). (more…)
SSKI has initiated coverage on Max India with an OUTPERFORMER rating. The company has presence in insurance and healthcare, two of the fastest growing sectors. The life insurance venture, armed by industry’s most productive agency force, is set to reclaim market share led by a multi-channel distribution approach and an enhanced ULIP portfolio. With hospital beds likely doubling in the next 4-5 years, superior margins (20-22%) and a strong brand, healthcare business (MHC) too is a robust model.
Punj Lloyd has informed us that Sembawang Engineers and Constructors, a wholly owned subsidiary of the company has won a major contract worth Rs 1272 crore for architectural, civil and structural work at the proposed Bayfront MRT station in Marina Bay in Singapore. The contract has been awarded by land transport authority of Singapore.
The Indian GDP numbers for Q2 FY08 are out. It is up 8.9%. This was in line with expectations given the deceleration in manufacturing activity in the rate sensitive sectors. Given that banks have started lowering their lending and deposit rates and that inventory is getting cleared, we expect manufacturing activity to pick up in the coming months and are thus maintaining our full year estimate of 9.3%.
Agriculture growth came in at 3.6% – given the good monsoon we expect trends to remain favorable. Overall industrial growth was 9.1%. (more…)
Moser Baer Photo Voltaic (MBPV), a wholly owned subsidiary of Moser Baer India just a while ago told us that it has signed a memorandum of understanding with the Government of Rajasthan for setting up of a large solar power project in the State with an estimated generation capacity of 1 – 5 MW. The project will be the largest grid-connected solar farm in India and entail an investment of around US $ 25 million (Rs 100 crores) at US $ 4.5 million per MW.
Clean Energy is the order of the day and even Internet Giants like Google have ventured into renewable Energy & Power. Google is already known for giving hefty discounts to its employees who drive Totyota Hybrid cars.
Moser Baer is also evaluating various options for setting up large sized solar farms across the SAARC region with strategic tie ups with some of the leading global solar PV companies and clean energy funds. Moser Baer Photo Voltaic plans to emerge as a leading technology driven PV equipment manufacturer in the world by implementing a capacity of 500 MW by FY10 through a mix of technologies in the crystalline silicon, concentrator and thin film domain. The company’s photovoltaic equipment manufacturing capacities for crystalline silicon, concentrator and thin film technologies are coming up in an SEZ in Greater Noida.