The shares of ICRA listed on NSE at Rs 570. Currently trading at Rs 615, 86% premium to the issue price. If you are one of those lucky allotees, you can book profits. Analysts recommend a BUY at Rs 425 for long term investors.
Author: CP
Infosys FY2008 Guidance at 22.8%
Infosys Q4 net jumps 14.34% to Rs 1124cr. It has declared final dividend of Rs 6.5 per share. The company reported net profit of Rs 1,124 crore in the fourth quarter versus Rs 983 crore in the previous year.
Dalal Street analysts were expecting net profit of Rs 1039.08 crore (Rs 10.39 billion) in fourth quarter versus Rs 983 crore (Rs 9.83 billion) in the previous quarter, a growth of 5.7%.
FY2008 guidance at 22.8% is in-line with Street expectations.
iGate Global Outperformer – ICICI Research
iGate Global reported a flat topline at Rs 210.1 crore as compared to the previous quarter on account of financial closures in the US market coupled with a 210 bps Rupee impact and higher offshoring. However EBIDTA margins were a big positive surprise expanding by 268 bps as compared to the previous quarter (15.3% vs our estimates of 13.9% for the current quarter) on account of higher offshoring (onshore : offshore effort at 25:75 in Q4 vs 27:73 in Q3), lower direct costs and SG&A (Selling, General & Administration expenses).
The company’s ITES business accounting for 10% of its revenues was hit by the slowdown in the sub-prime mortgage market in the US (ITES witnessed a 5.3% decline in revenues during the quarter), and the management indicated a possibility of sluggishness in revenues during the first quarter of FY08E. This is a temporary aberration that could rebound during the second quarter of FY08E and continue to be bullish on the stock going forward with the margin expansion story intact. ICICI reiterates a BUY with a price target of Rs 610 achievable over the next 15 to 18 months. Download the report here.
ICRA Allotment Status
You can now check the allotment status of ICRA here. The IPO of ICRA was subscribed 75 times. The ratio of allotment for retail 1 Lakh application is 1:2.5. Grey Market Premium is Rs 125 / share and is varying widely depending on the market swing.
Forthcoming Indian Real Estate IPOs
Ahluwalia Contracts ( India ) Rs 250 crore
Alliance Nirmaan Rs 200 crore
DLF Universal Rs 12,000 crore
Goel Ganga Group Rs 500 crore
IJM(India) Infrastructure Rs 400 crore
IVRCL Prime Urban Developers Rs 500 core
JMD Promoters Rs 500 crore
KNR Constructions Rs 160 crore
Kumar Builders Rs 500 crore
Mantri Developers Rs 500 crore
Omaxe Rs 1,500 crore
Puravankara Projects Rs 1,300 crore
RMZ Corporation Rs 200 crore
Taneja Developers Rs 300 crore
Jet Airways to Crash. Citi Puts Aggressive SELL
Media reports suggest that Jet has sealed a deal to acquire Air Sahara at enterprise value of $450 million, marginally lower than $500 million that was decided upon when the two had inked the buy-out agreement in January 2006. The final price will only be clear after the formal announcement which is expected today, reports add.
Reports also suggest that Jet is willing to stick to its commitment to pay off outstanding creditors worth Rs 400 crore of Sahara which was part of the original enterprise value. After the January agreement, Jet had sought reduction in deal value. It had finally walked out of the deal in June 2006 after operating Air Sahara for about three months.
I may have never seen a research report recommendation as this one from Citigroup on Jet Airways. 3H – SELL because of High Risk. Target Price of Rs 390.
Citi analysts expect combined entity to report an EPS of Rs 23.83 for FY2008 and Rs 32.94 for FY2009. Visibility on Jet’s international operations remains limited; domestic market conditions are not expected to improve meaningfully over the next 12 months. Sahara integration another imponderable.
Target price of Rs390 is based on a 7.5x FY07E EV/EBITDAR multiple. Our multiple is based on a 15% discount to the average 8.8x CY06E EV/EBITDAR multiple of our regional airline universe (ex Air Asia). We believe the discount to the Asian airlines is justified given: a) the very competitive domestic landscape; b) delays in stabilization of Jet’s international operations; and c) soaring fuel costs (which Indian carriers cannot hedge).