Equity Outlook – Buy the Sell Off – HDFC Bank

Here is the outlook of Indian Equity Market by Analysts of HDFC Bank’s Private Wealth Management Group – largely in-line with other fund managers of the HDFC Group [ Mutual Fund and Insurance]

India’s overall growth remains robust led by a strong performance in the Manufacturing and Services segment due to visible improvements in the consumption demand. India remains amongst the fastest growing economies globally inspite of lingering concerns on the global front. Q3FY10 results came on expected lines with no major surprises. Union Budget & International events is likely to provide further direction to the markets. (more…)

Milk and Dairy Products – Another Potential Inflation Sparker ?

India is the world’s largest milk producer, at 112mn tonnes currently. However, drought conditions, tighter feed and water availability have resulted in only a moderate growth in output; while demand has continued to rise due to shifting food patterns.

The key drivers of the upturn in India’s inflation so far have been primary articles (cereals, pulses) and manufactured food products (sugar, edible oil cakes). While we have highlighted the risk of higher (more…)

Indian Companies carrying Extremely High Valued Investments

Here is a study to compare the market value of listed investments of companies with their own market capitalisations. The objective is to identify stocks where the capitalisation of holding companies may have lagged the increase in value of listed investments. The analysis also ignores factors like holding company discounts, liquidity issues, etc

There could be other issues (liquidity, large debt, operational issues to name a few) which may have led to a company trading at a discount to value of investments (more…)

Tata Chemicals – Slightly better Q3

Tata Chemicals revenue down 25%yoy given lower realization on gas based urea and PAT up 83% led by – consolidation of Rallis India, strong volume growth in urea and off lower base of Q3FY09 PAT that was hit by one offs.

Soda ash sales in international operations improved 5%qoq but at lower prices. We expect muted performance in soda ash to continue due to ANSAC’s strategy of cutting prices to regain market share from Chinese producers will result in stable to lower prices ahead and ~20% (more…)

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