Indian Equity Research and Investment Strategy
Post somewhat disappointing results from India’s Largest Bank, the State Bank of India analysts believe that going forward, the bank has to only get better, though it maybe gradual process.
SBI’s headline profits were 5% below our (and consensus estimates); operationally too, it lacked meaningful direction. While there are signs of improvement – expansion in net interest margins, further improvements in deposit mix and healthy fee income growth. (more…)
Post Q3 Fy10 results of Reliance Infrastructure, here is Analysts view on the company. Roads: 2 toll roads started operations; achieved financial closure of Gurgaon – Faridabad toll road and won / emerged L1 on 6 roads concessions. RELI hopes to quadruple roads portfolio in the next 2-3 years. Mumbai metro rail financial closure done & bagged Rs110bn Line 2 in 2QF10.
Bofa Merrill has set an EPS expectations of Rs 56 and Rs 57.10 for fy10 and fy11 respectively with a 12 month price target of Rs 1,520 and a BUY rating. (more…)
Reliance Infra (RELI) had weak 3Q10 with Rec. PAT Rs2.7bn -30%YoY on non recognition of Rs580mn of profit on electricity sale of Rs700mn (delayed tariff hike in Mumbai License area – MLA), weak execution in EPC (sales -7%YoY), higher depreciation (+41%YoY) and lower treasury income (-27%YoY). However, Rec. PAT would be -15%YoY if profit of Rs580mn has been considered. Reported PAT +10%YoY due to loss of Rs1.4bn on derivative instruments last year. E&C order backlog was Rs190bn – 5.9x FY10E sales. (more…)
Aggregate earnings growth for Sensex companies at 20% yoy was in line with expectations. The breadth was however disappointing. Sectorally, only IT services exceeded expectations.
Revenue growth was driven by cyclical sectors benefiting from a weak base effect, be it commodity prices for global sectors or weak volumes for local cyclicals. (more…)
You asked for it, you have it. We received e-mails from Readers asking for more from the research. In order to satiate the needs of our readers, we had to migrate to a new content publishing platform. Location of Equity Research is here.
In the days to come, we will unveil a new research page with lot of Analytics focused entirely on Research, never before done in the history of Dalal Street.
You can continue to Browse the Old Site here or in the Archive Section.
A pre-budget correction in the Indian equities market is playing out with the rise of CRR. Analysts expect a market consensus on increased excise duties in the budget in February end as the Government scales back its fiscal stimulus program. Bofa-Merrill sees a weakness in the markets over next few weeks in the run up to the budget that may offer a better buying opportunity. (more…)