Bharti Airtel management confirmed that it is in exclusive talks with Zain for buying the African assets of Zain (15 countries excluding Sudan & Morocco) for US$10.7b. Bharti and Zain are likely to be in exclusive talks till March 25, 2010. Bharti’s Zain acquisition is likely to lead to weakness in Bharti’s share price in the short term. (more…)
Author: CP
Coverage of BHEL + GMR + Punj LLoyd + GVK Infra Stocks
In continuing our coverage on the Indian Capital Goods Space, we present to you the latest views on the street.
BHEL – BHEL’s order book at the end of 9M FY10 stood at Rs1,340 bn, recording an 18% yoy growth rate. This is significantly below the yoy growth rate of 37% at end-FY09, reflecting increasing competition and unfavorable base effect. Surplus equipment supply in the domestic market is likely by FY2012, leading to pressure on pricing. (more…)
Buy the Capital Goods Sell Off – Glodman Sachs
Goldman Sachs Equity Analysts in a report released just a while ago on the Indian Capital Goods sector express the SELL-OFF has created an opportunity to BUY Capital Goods / Infrastructure stocks as the entry levels are attractive. We present to you mix of Goldman and Merill’s Views on select stocks for investment consideration.
The Indian infrastructure sector as we believe spending on this sector is increasing at a rapid pace, offering substantial asset growth opportunities. Execution has improved, but (more…)
Post Correction – FII India Equity Strategy
Post Correction of 10% in Indian Equities, FIIs are weighing their Equity Strategy in India and their Long Term Investment Outlook. Before we present to you about their Strategies, we are just little over 2 weeks away from the second budget by the new Government – so this month will be a month of volatility. We have always advised you to BUY on correction [dalalstreet on twitter] and maintain the same tone – BUY.
So far into Q3, FY10 results Media, Banks, Telecom, IT have been (more…)
Current State + Future Outlook of Banking in India
JP Morgan hosted a Conference with 11 financial institutions and here is an excerpt from the same.
Rise in Credit Demand – Credit demand is slowly improving, driven by higher sanctions in infrastructure, along with mortgage and auto loans. Expectations are for ~15-16% credit growth for FY10 and ~20% in FY11. Increased credit offtake should not impact lending rates. (more…)
Lotrel Approval – Good For Lupin
Lupin has received FDA approval for four strengths of generic Lotrel (amlodipine and benazepril combination). Lotrel, a Novartis product, is protected by one OB listed patent – ‘802, expiry in Dec’17. At that time, the Lotrel market size was roughly $1.4 bln.
Generic Lotrel is clearly a lucrative product for Lupin, where the upside will depend on the timing of launches by other players. For Lupin Labs, Morgan Analyst assumes $40 mln sales for Lupin in F11 (based on a five (more…)