Indian Equity Research and Investment Strategy
Latest weekly data released by the Ministry indicate that prices of food articles were up 18.3%YoY for the week ended 25 Dec, vs. 14.4% the previous week.
Key products contributing to the price rise over the week were vegetables such as onions, tomatoes, brinjal. Although prices of pulses continued contracting, other protein-rich items such as milk, eggs, meat and (more…)
Rakesh Jhunjhunwala backed A2Z Maintenance & Engineering Services IPO failed to even get a fifth of subscription at the offer price of Rs 400 – Rs 410. We had recommended to AVOID the IPO and even Foreign Institutional Investors have given a thumbs down to the Over Priced A2Z IPO.
What we are picking up from our sources on the Street (more…)
Coal India Limited (CIL), the largest global coal producer (output 431mtpa) looks well positioned to gain from acceleration of domestic coal demand. Despite its 82% market share in India, most of Coal India’s sales are at prices that represent a c60% discount to imported coal. While this seems to suggest that Coal India lacks true pricing power, this is far from the truth, as Coal India’s capital (more…)
A2Z Maintenance & Engineering Services Ltd. (AMESL) is catering to the Indian infrastructure space with diversified business model focusing on growth areas of power, municipal waste management and varied range of services.
A2Z intends to use the proceeds of the IPO for Investment in three biomass (bagasse)-based power cogeneration projects of 15 MW each in the State of Punjab, Investment in various subsidiaries, repayment of loans and working capital requirements.
The Company’s near term revenue visibility is supported by good order book of [Rs 1200 Cr] its EPC business (more…)
India’s GDP growth in 2Q FY11 surprised on the upside, as it accelerated to 8.9% from 8.8% in 1Q on the back of a pick up in agriculture (4.4%) services (9.6%) and Government spending, even as industry growth slowed to 8.6% YoY from 11.3%.
For the Full year, growth forecast is 8.6% (from 8.4%) in FY11E and 8.4% (from 8.2%) in FY12E. In particular, we expect an equally
robust December quarter with agriculture recording strong growth on the base effects of last year’s drought.
With inflation likely to be a bit tricky (more…)
Almost all the broking house say that the Discount on IRB Infra is unwarranted. The stock is down its from its peak of INR 313 in Aug 2010; more importantly, the stock has corrected ~25% in the last month.
The main reason for correction – Slowdown in NHAI project award since May 2010 and Delay in start of execution in the 4 projects won last year – While execution was expected to begin on all projects in Q1FY11, it eventually started on 2 projects in Q2FY11 and (more…)