Indian Equity Research and Investment Strategy
Dishman Pharmaceuticals & Chemicals (DPCL) has posted disappointing results for the Q4FY10 due to 24%YoY fall in CRAMS revenues. Total income declined by 13%YoY from Rs2.89bn to Rs2.50bn due to the slowdown in Carbogen Amcis (CA) and other CRAMS business. Net profit declined by 71% from Rs717m to Rs211m.
The company’s EBIDTA margin improved by 560bps from 24.2% to 29.8% mainly (more…)
In a conference call Prof. Kirit Parikh, ex-member, Planning Commission, and chairman of the expert group constituted by the Government on sustainable petroleum pricing, to share his views on the Indian energy sector and related issues in the broad economy.
Here are the key takeaways from the Conference Call with Kirit Parekh
Near-term impact on inflation and fiscal balances would be more than offset by the long-term benefits of fiscal stability for the Government. Current market conditions, esp. commodity prices would limit the impact. (more…)
Government raises threshold for public shareholding in listed companies: The Indian government today amended the Securities
Contracts (Regulation) Rules, making it mandatory for listed companies to have a minimum public holding of 25%.
We present below a sort of the broad based BSE 500 index which indicates that the following companies have a public holding of less than 25% and will have to comply with the change in regulation over the next few years. (more…)
The Indian Oil & Gas sector reforms are unlikely to move forward if not implemented in FY11E. In a similar no election period in 2000 price of subsidized products were hiked aggressively including 2.8x hike in kerosene price. Reforms if not implemented in FY11E will be difficult to implement thereafter.
From FY12E there is spate of elections in every year until FY15E. A group of ministers (GoM) appointed on the oil subsidy issue is (more…)
Shiv-Vani Oil & Gas, the pre-eminent domestic player in onshore oil & gas exploration, has made aggressive investment to capitalise on the ~US$4bn pa onshore opportunity in India. With ONGC and OIL accounting for 90% of its sales, the company is breaking new ground in technologydriven services like integrated well services and directional drilling.
With only 25% of pre-NELP (New Exploration Licensing Policy) onshore blocks with ONGC and OIL being explored, the probable size of (more…)
Punj Lloyd is one of the strongest companies for executing Infrastructure Projects in India and abroad. However, adjusted loss for 4Q was INR4.6bn was a surprise. Performance was impacted by 1) lower execution (revenue at INR17.8bn, -45% yoy) and 2) cost overruns at a) Ensus Bio Ethanol project in the UK (this is in addition to INR1.63bn, GBP23.1m liquidated damages claimed by customer in March 2010) and b) ONGC Heera project. (more…)