Indian Equity Research and Investment Strategy
The board of Jai Corp has approved the proposal for acquisition of the manufacturing units of Pet Fibres producing PP HDPE woven sacks and bags and the manufacturing unit of prime wovens producing PP HDPE woven sacks, jumbo bags and PP staple fibres.
The board of Jai Corp has appointed Anand Jain as an additional director of the company.
Hindustan Construction Company has announced that Alpine-Samsung-HCC JV i.e. Alpine Mayreder Bau GMBH (ALPINE) – Samsung Corporation (SAMSUNG) and the company has been awarded a contract for design and construction of two underground stations and tunnel between New Delhi station and Talkatora Garden, from Delhi Metro Rail Corporation Lid, New Delhi.
The value of the contract is Rs 693.61 crore plus Euros 1.457 crore. The total value of the contract is Rs 774.64 crore. The company’s share in the total value of the contract is 33% i.e. Rs 255.63 crore.
Ansal Properties & Infrastructure has entered into joint venture / strategic sales with Pearl Global, for setting up a cyber park on about 8 acres of land on NH-8 at a very strategic location with an expected sales value of about Rs 350 to Rs 400 crore.
The company has entered into joint venture / strategic sales with Ashiana Retirement Village, for developing a group housing meant for senior citizens, to which about 14 acres of land in its Lucknow project has been sold.
Further, the company has entered into joint venture / strategic sales with Globosport India whereby they will provide sports infrastructure and coaching facilities at its Lucknow project and other places, wherein Mahesh Bhupati and Gaurav Natekar, renowned tennis players, will be involved.
Citigroup in a research report released just a while ago has initiated coverage on Yes Bank with a BUY recommendation and a price target of Rs 230.
Yes Bank is India’s youngest private bank, has grown rapidly and profitably, and delivered strong stock returns. This is a Structural play given growing Indian banking opportunity, strong management and execution capability, scarcity value of new private banks; and 2) Cyclical play on easy liquidity, stable asset quality, continued economic growth. If the environment holds, Yes Bank should be a large beneficiary; else, it could be vulnerable.
Based on growth, track record, and positioning, Yes is a wholesale bank. It has excelled in corporate and advisory businesses, expanded focused asset book, and kept risks low. Its retail business, though still in the making, should add another leg to growth and returns.
Citi believes franchise and value enhancement will be driven by more balance in a) deposits – low cost retail from wholesale, b) fees – transaction banking and retail from advisory, and c) assets – more diversified mix from current mid market.
Yes Bank is expected to grow earnings by 56% and loans by 70% over FY07-10E, driving ROEs to a strong 17% in FY09E. Diluted EPS for FY08 is expected to be Rs 5.65 and for FY09 it is expected to be Rs 8.18.
There are rumors of Follow on Public Offering in Syndicate Bank stock. Government holds 66.47% in the bank. The scrip had touched a high of Rs 93.40, its 52-week high. It hit a low of Rs 88 so far during the day. The stock had hit a 52-week low of Rs 57 on 3 April 2007.
At the current price of Rs 92.35, the scrip trades at a PE multiple of 5.45, based on Q1 June 2007 annualised EPS of Rs 16.94. Syndicate Bank’s net profit rose 22.4% to Rs 221.03 crore on 47.3% rise in operating income to Rs 1999.34 crore in Q1 June 2007 over Q1 June 2006.
IVRCL Infrastructures & Projects has announced that the Pune region of the company has bagged building division and power division orders of an aggregate value of Rs 394.24 crore.
GTL, India’s leading network services player, has received the prestigious golden peacock global award for corporate governance, in the 8th international conference on corporate governance held in London on 21 September 2007.
Nearly 130 companies had applied for this prestigious award from across the world. The world council for corporate governance, UK, confers the award annually, to companies that have demonstrated benchmark standards of corporate governance. The company received the award with an appreciation for its good corporate governance practices that reflected in transparent, disclosures and compliance and voluntary audit of quarterly accounts, functioning of the board and corporate social responsibility activities.
As per reports, the issue of bonus shares was discussed at the meeting of inter-ministerial comittee (IMC).
At the current price of Rs 369, the scrip trades at a PE multiple of 11.38, based on Q1 June 2007 annualised EPS of Rs 32.41.
As per reports, the issue of bonus shares was discussed at the meeting of inter-ministerial comittee (IMC).
Report suggested that in terms of Department of Public Enterprises (DPE) guidlines, central public sector enterprises (CPSEs) having reserves and surplus more than three times of their paid up capital are expected to declare bonus shares.
On a paid up capital of Rs 845.65 crore, total reserves of GAIL (India) the company stood at Rs 10,547.26 crore, which is about 12.5 times of the paid up capital.