The Indian Grey Market for IPOs which went for a toss after Anil Ambani’s Reliance Power Ltd royal rip off of small investors is thriving back. After the 2005 IPO scam, none want to take chances. This time the system is designed so well, it is out of reach of SEBI because the big fish is not on any official record. (more…)
Author: CP
Welspun Gujarat diversifies into EPC with MSK Projects
Welspun Gujarat, India’s leading pipe manufacturing company has announced the acquisition of MSK Projects (MSKP IN, not rated) – a construction company – for a consideration of INR8bn (75% stake). Synergies from this acquisition may include – diversification into the infrastructure sector, enhancing Welspun’s ability to provide its customers with end-to-end solutions to plate-pipe-pipeline laying; and MSK Projects through Welpsun’s balance sheet support likely to bid for large infrastructure projects specifically into the road sector. MSK’s current order book of INR5bn constitutes 40% road projects.
Here is the take from various brokerages on Welspun Gujarat’s Diversification move. Kotak analysts said there will be few orders where pipe (more…)
Welspun Gujarat bags orders worth Rs. 600 Crores
Welspun Gujarat Stahl Rohren Ltd., the 2nd largest line pipe company in the World has recently won orders worth Rs. 600 Crore for Pipes from its prestigious global clients.
It may be noted that Welspun very recently announced another order of Plates and Pipes worth Rs. 600 Crore. With the addition of these orders, the current order book of the company stands at Rs. 7,800 Crore without excluding the orders being executed in the current quarter. (more…)
ENAM Downgrades Sugar to Underweight
The basic premise for the rally in sugar prices was led by the production deficit in India and Brazil, further supported by rising consumption from emerging markets, which depleted inventory levels to historical lows. However the prospects of higher Brazilian output, government intervention and lackluster follow up demand from key EMs has led to sugar prices cooling off by 30% globally and 20% domestically since Jan-10. With Brazilian output coming on stream by April-10, price recovery to previous high’s could be ruled out, unless there are extreme climatic conditions.
Brazilian sugar output for the 2010/11 season beginning April could increase by ~15%, driven by higher cane production and recovery (more…)
Research Follows Hindustan Unilever Stock Movement
Instead of Research Leading the Stock Price movement, it always follows which makes it good for nothing. [Sometimes I feel that these Reports are Published purposely a day or two after the necessary price movement in the stock / Or after building favorable F & O Positions . We are doing Historical Research on the same and the findings will be published very soon here] Hindustan Unilever stock has corrected more than 15% and then the Analysts published their views. Here is why the stock has crashed when the market has hit a new 12 month high.
JP Morgan Said, (more…)
Low Cost Vs Full Service Airlines
This aviation cycle commences with 5 meaningful players (vs. 3 in previous cycle). FSCs [full Service Carriers] have long argued that LCC [Low Cost Carriers] cost structures are very similar to FSCs, except that the former enjoy unit costs that are 15-20% lower, given greater seat density on fleet. We believe that capital costs, a reflection of balance sheet health, will be key differentiators in this cycle given that pricing will be far more important in the current cycle. (more…)