Deutsche Bank Equity Research has maintained a BUY recommendation on Centurion Bank of Punjab. The bank has very rapidly tackled the issue of rising NPLs in 2-wheeler finance by deliberately tightening credit filters and withdrawing from some regions. Centurion is also preemptively rationalizing the personal loans portfolio to preclude NPLs spinning out of control. Here too filters have been tightened and the bank is focusing more on the segments which have demonstrated favourable credit loss characteristics. (more…)
Author: CP
Tata Steel JV with Riversdale Mining
Tata Steel has informed us that Riversdale Mining and the company have signed an agreement to establish a special purpose joint venture vehicle to develop a hard coking and thermal coal project at key coal exploration tenements held by Riversdale in Mozambique. Mozambique is fast-becoming a region of global significance for the coal sector.
Under the terms of the agreement, Tata will pay AUD100 million (approximately US $ 88.2 million) to acquire a 35% Project Interest. For this consideration, Tata secures a key position in the joint venture formed to develop the Mozambique coal project, as well as a 40% share of the off-take for coking coal.
Tata will also have the option to participate above this level of tonnage, and may participate with Riversdale in future opportunities on Riversdale’s surrounding tenements. The joint venture comprises two licences and covers an area of 24,960 hectares. Riversdale Mining holds a total acreage of over 290,000 hectares in Mozambique.
Lehman on Crompton Greaves
Lehman Brothers equity research has initiated coverage on Crompton Greaves with an OVERWEIGHT rating and an EqualWeight rating on ABB India Ltd.
Crompton Greaves Ltd: CGL
Large investments in the Indian power transmission and distribution (T&D) sector will likely drive impressive earnings growth for CGL over the next five years. CGL is among the five largest power T&D equipment manufacturers in India with a presence across product categories. (more…)
Realty stocks soar on repeal of Urban Land Ceiling and Regulation Act
Close to 15,000 acres would be released in Mumbai for development following the repeal of Urban Land Ceiling and Regulation Act. The bill for the repeal of Urban Land Ceiling and Regulation Act (ULCRA) had been on the agenda of the state legislature for the last two sessions. In April this year, the Maharashtra government moved a resolution to repeal ULCRA on the last day of the Assembly session.
Shree Ram Urban Infrastructure (up 10.38% to Rs 395), Anant Raj Industries (up 12.89% to Rs 359), Housing Development & Infrastructure (up 5.11% to Rs 798.80), Peninsula Land (up 5.22% to Rs 133), Unitech (up 5.24% to Rs 378.25), Bombay Dyeing & Manufacturing Company (up 4.38% to Rs 697), Phoenix Mills (up 3.45% to Rs 2,300) and DLF (up 1.65% to Rs 894) edged higher.
Lehman Initiates Coverage on DLF
Lehman Brothers Equity Research has initiated coverage on India’s largest Real Estate company, DLF with an OVERWEIGHT rating. DLF is well poised to capitalise on the sector’s bright prospects. Rapid asset turnover has the potential to drive its financial performance. Lehman expects DLF to maintain its leadership in the sector due to the size and quality of its landbank and strong position in the high margin commercial/retail segments.
DLF’s landbank which, both in size and quality, is ahead of its peers. Execution capabilities demonstrated in its landmark projects and relationships with leading retail brands and corporates. Large proportion of (more…)
Visesh Infotecnics + Sical Logistics Funding
Visesh Infotecnics is declared has a winner in the Deloitte Technology Fast 50 India 2007 program a ranking of the 50 fastest growing technology companies in India. This was announced during the Deloitte Technology Fast 50 India 2007 ceremony held at Taj Mahal Hotel & Resorts, Mumbai on 22 November 2007.
Sical Logistics has received approval from the Government for investment to be made by Old Lane Mauritius IV , an investment vehicle of Old Lane India Opportunities Funds (Old Lane). It is aimed to fund the growing infrastructure business of the company and Sical’s newly formed subsidiary Sical Infra Assets.
Old Lane Mauritius IV will be issued compulsorily convertible debentures (CCDs) worth $26 million in Sical Infra, which will subsequently be converted into equity shares of Sical Infra.
Sical Infra was formed to house Sical Logistics’s asset-heavy, capital-intensive, longer gestation infrastructure based businesses like the road and rail terminals at Nagpur, Sical iron ore terminal at Ennore, the container rail project, the container terminals at Tuticorin and Chennai in joint venture with PSA Singapore as well as Sical Distriparks.