Suzlone Energy + BHEL

Suzlon Energy announced during market hours today, 27 September 2007, it has made a breakthrough into the Turkish wind energy market with an order for 31.5 Mega Watts (MW) of wind turbine capacity. The contract is for Ayen Enerji Co. Inc. and will be supplied through 15 units of Suzlon’s S88 – 2.1 MW turbines, Suzlon said.

Suzlon’s net profit had fallen 53.8% to Rs 89.40 crore on 10.1% decline in sales to Rs 839.19 crore in Q1 June 2007 over Q1 June 2006.

BHEL has secured an order from Steel Authority of India (Sail) for setting up a 62.2 mega watt (MW) captive power plant in Burnpur, West Bengal. The contract is worth Rs 765 crore. The plant will meet the power requirement of Sail’s expansion plan of IISCO Steel plant at Burnpur.

This contract is one of the largest-value single orders secured by the government-owned Bhel. Its order book now stands at Rs 65,000 crore. The project will be completed within 29 months.

EIH terminates Hilton alliance from Trident Hotels

EIH has decided to terminate its strategic alliance for marketing and co-branding with Hilton International for the Trident Hilton brand in India. EIH had given notice to Hilton of its decision to take effect from 31 March 2008.

In consequence, the existing Trident Holton hotels in Gurgaon, Agra, Jaipur, Udaipur, Bhubaneshwar, Chennai and Cochin will be rebranded Trident hotels effective 01 April 2008. The Hilton Towers in Mumbai will also be rebranded as Trident Towers effective 01 April 2008.

Petronet LNG running out of Gas – SELL

Globally LNG projects continue to be delayed, and prices continue to rise. Domestically produced gas in India are US$4.0-5.5/mmbtu, making LNG economics unfavorable esp. in light of ever increasing indigenous supply prospects.

In the current high price environment for LNG, the likelihood of Petronet entering into a long-term agreement anytime soon to secure supplies for its Dahej expansion and greenfield Kochi terminal appear unlikely. Spot volumes will continue to drive earnings in the near term (FY09-10E earnings increased by 11-12%); despite increasing domestic supplies, we build in high long-term utilizations driven by sustained growth in gas demand. Power plans, though interesting, are at a preliminary stage and completely contingent on competitive pricing for long-term LNG.

Petronet LNG stock is up 47% in 1 month, Citi analyst believes that the stock more than adequately reflects the high capacity utilizations (95%) that is assume in numbers in the longer term. Inherent structural challenges (increasing domestic supplies + globally high LNG prices) lend to believe that the risk is now more on the downside and warrants us to change recommendation. The DCF values are quite sensitive to capacity utilization – every 5% dip in utilization affects fair value by Rs6. As a consequence Citi downgrades the stock to Sell (3M) from Buy (1M) with TP of Rs78 on roll-forward.

Ind Swift Labs + Glenmark Pharma receive MHRA (UK) approval

Ind Swift Labs has received the MHRA (UK) approval for its 100% export oriented global business unit located at village Jawaharpur, Punjab.

Glenmark Pharmaceuticals has also received approval from MHRA of UK for its state of the art semi-solids (ointments & creams) manufacturing plant at Baddi, Himachal Pradesh. This is the 3rd of the company’s manufacturing plants to have been approved for GMP by the UK regulatory agency – MHRA. This will enable the company’s foray into supply of creams and ointments in Europe soon. The Baddi plant had already received GMP approval from TPD, Canada, and is well on course to receiving USFDA approval in the near future, which would enable the company to enter the niche segment of semi-solid dosages in most of the regulated markets of the world.

IndiaBulls + Hazoor Multi Projects Fund Raising

The board of Indiabulls Real Estate has decided to issue up to 4,30,00,000 fully convertible warrants to the promoters and directors of the company on preferential basis for a sum of Rs 2,322 crore, which upon conversion would entitle them to acquire 4,30,00,000 equity shares of face value Rs 2 each at a conversion price of Rs 540 per equity share of the company for preferential issues.

The members of Hazoor Multi Projects have decided to increase the authorised share capital from Rs 10,00,00,000 to Rs 20,00,00,000.

The members have accorded their consent to the issue of 85,00,000 share warrants on preferential allotment basis, carrying an entitlement to subscribe to an equivalent number of equity shares of Rs 4 each, at a price of Rs 16 to promoter & its affiliates and non-promoter.

Infosys Results + Wipro Contract

The board of Infosys Technologies will meet on 11 October 2007 to announce the Q2 results.

Wipro will provide integrated information technology (IT) services encompassing applications support, maintenance and infrastructure management services to Thames Water.

Meanwhile, yet another report suggests that Wipro’s business process outsourcing (BPO) arm is likely to buyout MarketRx, a pharma focused market analytics company. This acquisition will bolster Wipro BPO’s analytics practice, which at present accounts for less than 10% of its revenues. The New Jersey-headquartered $50-million MarketRx has over 25 clients, including Merck, Eli Lilly, Pfizer and Johnson & Johnson.