Indian Equity Research and Investment Strategy
Ranbaxy Labs [Daiichi Sankyo] got a double upgrade from Morgan Stanley from UNDERWEIGHT to OVERWEIGHT citing strong cash flow over the next 3 years and also recovery in the US.
Expect the business to recover in the next 3 years via operating leverage with base business growth and cost containment (closure of unprofitable sites/operations; (more…)
FMCG sales grew 5.9% YoY in October 2009 (the slowest growth since Feb-07) compared to 14.8% growth in F1H10. The TOP10 players witnessed deceleration in sales growth, with sales in October growing 1.7% vs. 9.9% growth in F1H10.
Hindustan Unilever witnessed a deceleration in sales across its major categories (viz. laundry bars, toothpastes, soaps, shampoos, tea, laundry powder, and skincare), leading to de-growth of 0.4% (vs. 8.1% in F1H10) for the first time since February 2007.
Dabur witnessed a deceleration in revenue growth, from 9.6% in F1H10 to 3.9% in October 2009.
Colgate’s sales growth in toothpaste and toothpowder slowed down, leading to overall growth of 5.9% vs. 10.5% growth in F1H10.
Nestle saw sales growth slowing from 15.8% in F1H10 to 6.7% in October 209, with noodles, milk powder, chocolates, and coffee sales growth decelerating in October 2009.
P&G’s laundry powder, shampoos, and feminine hygiene sales led to a slowdown in sales growth from 16.4% in F1H10 to 7.6% growth in October.
Britannia has witnessed de-growth since Jul-09, with the pace accelerating in October 2009 to 4.5%
The objective of the scheme is to seek capital appreciation by investing primarily in equity and equity-related instruments of PSU companies across the cap curve and sectors. PSU companies are good wealth creators and industry leaders in their area of operations. The expected re-rating of these companies in the future in the event of the government divesting stakes in PSU companies can lead to above average gains over a period of time.
Investment Strategy:
At least 65% of the assets will be invested in PSU companies. Fund shall take (more…)
MBL Infrastructure Ltd (MBL) is engaged primarily in construction and maintenance of roads and highways.
MBL has a strong order book of Rs 815 crore (including order inflow of Rs 203 crore post June), which is at 1.6x FY09 revenues. This provides revenue visibility over the next 1.5-2 years. However, the current order book to FY09 revenues ratio is relatively lower than its peers.
MBL has successfully completed the execution of the BOT project of the 114 km Seoni-Balaghat-Rajegaon state highway under (more…)
Tata Steel announced its results for Q2 FY2010.Both Corus and Tata Steel consolidated reported EBITDA and PAT were in red for the Sep qtr as losses at Teesside (TCP), and restructuring charges of Rs9.1B (some related to contract cancellations) hit earnings.
Corus reported EBITDA loss of $375MM (including TCP loss of $170MM) vs the 1Q loss of $387MM. Realizations fell q/q across segments in Europe. Tata reported consolidated PAT loss of Rs28B, 35% higher than 1Q loss of Rs20.2B. Tata Steel plans to reduce debt by $2B in the (more…)
Indian are ~40% of UAE’s population; forming ~10-12% of India’s inward remittances. 31% of the 5.3m Indians in the Gulf are in UAE.
UAE forms ~8% of India’s non-oil exports and 3.0-3.5% of India’s nonoil imports. DP World operates five container terminals in India, accounting for 40% of India’s container traffic.
L&T has two joint ventures in the UAE, others with business interests include Gammon India. EMMAR world’s leading realty player originationg from Dubai has a JV with MGF in India.
Nagarjuna has invested Rs700m in a Dubai real estate project. Punj has 15% of its order backlog of Rs268bn from the Middle East [Dubai is negligible though]
Bank of Baroda has 10 branches in the Gulf (largest), but mostly small banking exposure, mainly for remittances. Bank lending to UAE funded projects in India unknown.