Indian Equity Research and Investment Strategy
Leading FII BNP Paribas has downgraded the Indian Power Sector to Negative citing Overcapacity in 2013. India is set to see an unprecedented power generation capacity addition. Can we expect India to enter a slight base-load surplus in FY12, worsening to 16% in FY13 ?
Research indicates a market-clearing price of INR4/kWh, assuming that a majority of thermal power plants operate at 70% utilisation rates. An IPP can improve utilization rates only by pricing its output at (more…)
Are investment bankers the Worst people when weighed on the scale of Ethics ? Guess the Collapse of Wall Street in 2008 and recent Loan Scam has ample evidence to prove the same.
Money Matters Financial Service – MOMF has a questionable history, window dressed by broking firm IIFL. MOMF bought Dover Securities, listed on BSE, and reverse-merged with Dover Securities. Under the guidance of IIFL, MOMF did a QIP Placement to Goldman Sachs, Morgan Stanley and other FIIs at Rs 625 raising around Rs 400 Cr.
The Unanswered Questions:
How come none of the Institutions questioned the Business practice of MOMF ? Were they all too blind or were (more…)
I have read lot of reviews on MOIL. However, the first and foremost is the basic industry in which MOIL operates. It is Manganese and the scope of this is not as huge as Iron Ore and is very small. However, MOIL has a 45% market share in India.
MOIL is a Debt Free company with Rs 105 Cash / Share on its balance sheet. The financials of MOIL are discussed here. I would like to make some guesstimates on the subscription taking (more…)
It is unbelievable that the Government headed by Dr Manmohan Singh can be the most corrupt government in the History of Independent India. I don’t think I have to prove this in the court of law, but everybody agrees with me. A word of caution as I read a report from a leading FII with massive interest in Indian market which states,
As the demand for land has increased since the 1990s, so has the level of corruption. Issues over land acquisition have (more…)
Bank of Baroda reported PAT growth of 61% YoY to INR10.2bn, mainly due to lower than expected credit costs. While loan and margin expansion was on expected lines, BoB surprised positively on its robust asset quality as against other PSU peers that have disappointed this quarter on this front.
BOB’s loans have expanded 30% yoy (well above industry), is fairly broad-based, (more…)
Cutting Edge Outsourced Software Development Company HCL Technologies reported Strong revenue growth yet again with revenues at US$ 804 mn (+9% QoQ ) beating est, however balanced with operating margins down ~230 bps QoQ, ~650 bps YoYn Apps/IMS continue to driven growth (9%QoQ). Rev from Europe were up 18% QoQ with finsvcs /telecom/retail seeing +10%/10%/13% QoQ. Strong Net adds(5k+) for 2nd qtr in a row.
While gross margin at 31.6% was 50bp higher than our estimate, SG&A, which (more…)