Ambuja reported 1Q CY10 EBITDA at Rs6.2bn, up 19% YoY & 44% QoQ; results were in line with our expectations. Along with 1Q results, Ambuja announced commencement of commercial production for both the Bhatapara and Rauri expansions. Factoring 1Q trends and tad earlier-than-expected capacity expansions, we have lifted both EBITDA (+4%) and earnings (+10%) for CY10E. (more…)
Author: CP
Adani Enterprises – Infra conglomerate – Buy
BOFA Merrill has initiated coverage on Adani Enteprises with a BUY Rating. Adani is transforming its business model to sustainable annuities with high-margin / RoE (23.9% / 34.7% by FY12E) and heavy capex from a volatile, low capex, and low margin / RoE (3.8% / 16.7%) trading business. It plans to invest Rs412bn over FY10-13E with IPP and coal mining accounting for 74%, which imparts visibility to scale. Its control over coal mine to power value chain shall drive superior margins. (more…)
FIIs Views on RBI Monetary Policy
Here are the views of various influential Foreign Institutional Investors on RBI’s monetary policy,
Goldman Sachs said,
We think the policy statement has correctly analysed inflationary risks which we have been flagging for some time now. Today’s policy action suggests that the RBI prefers a more gradual approach to rate hikes. We continue to think the RBI will deliver a total of 150 bp of policy rate hikes in 2010 (more…)
TCS – Strong quarter, growth outlook bullish
TCS Revenues increased ~3.1% QoQ to $1.7bn – constant currency growth was ~4.2%. Revenues are in line with our expectations but may disappoint bullish expectations post the strong Infosys top-line numbers last week. TCS’s results confirm our thesis of broad-based growth across verticals. Even ‘weak’ verticals, such as manufacturing and telecoms, grew 3% QoQ each in line with the company’s growth. (more…)
IndusInd Bank – Q4 benefits of restructuring
Updated: IndusInd Bank reported 4QFY10 net profit of Rs981mn (+11% qoq, +94% yoy). This was driven by 1) 89% growth in NII to Rs2.73bn (3% ahead of our estimate) on margin expansion (NIMs at 3.2%, +25bp qoq) and higher volumes (up 8% qoq, +30% yoy), and 2) noninterest income (i.e., net fee) which was 9% ahead of our estimate on thirdparty product distribution and recovery of NPAs of Rs181mn. Some of this was offset by higher loan loss provisions, as the bank accelerated provisions to meet RBI coverage requirement (more…)
Explaining Inflation, Valuations and Deficit and Rise of Sensex
The Indian Inflation, Valuation and Deficit have all touched a high and Investors question the rising SENSEX amidst such a macro environment. We agree that Deficit is a cause of concern, however, lately Foreign Investors have turned a blind eye on the mis-represented and ever growing Indian Inflation, which is an accepted way of life. As said in one of our previous article, valuations get expensive when Investors see GROWTH ahead – paving way for P/E expansion.
Inflation – Nonfood, non-fuel inflation is currently at 4.9%. Historically, when this number has exceeded 10%, the market has always posted negative returns on a six-month forward basis. However, when the number is lower, (more…)