iGate surprised us this quarter with the announcement to buy back and de-list from Indian stock exchanges by December 2007. The tendering process would be through a reverse book building route with the average price prevailing prior to November 13th, 2007 as a base price. Our analsyt recommends investors to tender their shares with a price of Rs 450 which discounts our FY09E EPS of Rs 30 by 15x. The buyback price would be decided based on the price tendered by the highest number of shareholders.
Author: CP
Maruti + Magneti Marelli in Partnership
The manufacturing facilities of this joint venture company will be located in Manesar, in the industrial district of Gurgaon, India.
The initial investment of this project is 15 million Euros (about Rs 75 crore) and it will be funded through a mix of equity and debt. As per the agreement, Magneti Marelli will contribute 51% of the share capital of the new company, Suzuki Motor Corporation will contribute 30% and Maruti Suzuki 19%.
The production will commence in end 2008. Initially, the elctronic control unit (ECU) produced at Manesar will be used for Maruti Suzuki diesel cars and later on, it will also cater to other car manufacturers.
Meanwhile, as per recent reports, Maruti Suzuki’s proposal to set JV with Japan based Futaba Industrial Co, for manufacture and sale of exhaust system components for automobiles has been approved with foreign equity of up to 51% amounting to Rs 45.9 crore, company said.
Bharati Shipyard secures order
Bharati Shipyard has announced that the Shipping Corporation of India board has accorded approval for acquisition of four numbers anchor handling tugs cum supply vessels from Bharati Shipyard. The total price of each vessel is US $ 22.32 million totaling to US $ 89.28 million. The contract signing ceremony will be held on 15 October 2007.
These vessels are the first of its kind being built by shipping corporation of India in India using such advance design. These vessels will be constructed by using havyard design which will be used for the first time for such vessels built in India. The design allows for achieving high bollard pull and fuel efficiency as against equivalent designs. Further, the design allows higher DWT and higher cargo carrying capacity compared to other 80 tons AHTSVs with similar dimensions.
Lupin-Kyowa Pharma Acquisition – BUY
Lupin is on an acquisition spree. Earlier it acquired Rubamin and now its Kyowa Pharma in Japan. Lupin has acquired 80% stake in Kyowa Pharma, Japan (will increase to 100% soon) at an enterprise value of US$110 mn (1.7x sales and 11.3x EV/EBITDA). Current sales will significantly scale up from US$65 mn to US$100 mn and profits from US$3-4 mn to US$10-12 mn over the next 2-3 years. This would mainly be led by the increased number of product launches from Lupin, higher genricisation of the market and operational and sourcing efficiencies.
Taking this into consideration, the acquisition is a good opportunity for Lupin from a strategic point of view. The stock is trading at 15.9x FY08E and 13.1x FY09E earnings. ASK Securities reiterates a Buy rating on the stock with a target price of Rs 807.
Tags: Dalal Street, India Pharma, India Invest, India
Infosys Q2 Results
We have obtained a copy of Infosys Technologies results and here is an insight. The company which used to report QoQ growth has stopped reporting so because of its poor performance and its inability to transition itself. Now they are reporting YoY like any other commodity company.
- Net profit of Rs 1,100 crore[Q2 – Sept-30] Vs 1,079 crore [Q1-June-30]
- Infosys Full Year Guidance: EPS EXPECTED AT RS.79.5 to 79.88
As said by Lehman Brothers, Indian IT Companies fail to innovate and have lost their competitive edge with the falling Greenback. So Book Profits in Infosys at Higher Levels.
Update: It is seriously high time guys that all the research analysts get bold like Lehman Brothers and downgrade IT stocks.
Indian Rupee Vs – USD + Euro
Here is some data from HSBC on Indian Rupee Versus USD and Euro
INR /USD, end-year 45.61 43.46 45.05 44.26 39.00 37.50[2008E] 36.00[2009E]
INR /EUR, end-year 55.25 59.11 53.14 58.36 56.55 50.63[2008E] 46.80[2009E]