The Basis of Allotment of Astec Life sciences IPO is now available here. The IPO was oversubscribed and hence partial allotment has been done to all applicants. You can check the status of your (more…)
Author: CP
MidCap Stocks for Long Term – Part II
Edelweiss Research has initiated coverage on few growth oriented MidCaps. You must read Part-1 of the coverage here. Here is the second set of Stocks recommendation in the MidCap space.
Infotech Enterprises:
Infotech Enterprises (IEL) has developed a unique positioning in the engineering services space.One of the key positives during the recent results is the scale up of revenues from the top 10 clients. Continuous expansion in services portfolio (more…)
MidCap Stock Picks -1
Edelweiss has some favorite picks in the MidCap space where it expects an improvement in top line to drive strong EBITDA growth as revenue growth outpaces costs. Stocks with high degree of operating leverage. Edelweiss’ conviction is that these stocks have a high probability of surprising on the upside over the next 1-3 years.
This is Part 1 of the Coverage and here are the stocks and brief excerpts / justification them being picked up.
AUROBINDO PHARMA:
Strategic alliance with Pfizer (PFE) for 80 products and 218 SKUs across multiple markets adds strategic depth and long-term value. Regulated sales are likely to post 38% CAGR in FY09-11E, to INR 13 bn, as ARBP is poised to benefit from current scale of filings. Expect an EPS of Rs 90 and 118 for FY10 & FY11. Maintain BUY (more…)
Aban Offshore – Back to Growth
The Capital restructuring and the award of long-term contracts at premium dayrates have helped Aban tide over its near-term cash shortfall. Aban has raised US$150 mn through issue of 5.7 mn shares at Rs1,224/share. This amount will primarily be used to redeem the outstanding bonds of NOK1 bn (US$150 mn) due in Dec’09, which were issued by its Norwegian subsidiary Sinvest.
The deployment of four of its jackup rigs at better-than-market rates has significantly improved near-term revenue and cash flow visibility for Aban. Management indicates that it is in an advanced stage of negotiation for the (more…)
Home Loans – Demand is Back
For the home loan market, volume seems to be the name of the game at present, with emphasis on expanding book rather than focussing on margins. The combination of lower property prices, attractive interest rates and aggressive promotions does seem to be working, and banks are seeing a progressive pickup in disbursals.
Axis Bank has entered with its own discounted rate scheme for new home loans, PNB and SBI have extended the time period for which their low rate scheme will be applicable.
Banks have been conservative with their lending. The target base remains the salaried customer with a regular source of income. Monthly installments are capped at 50–55% of net monthly salary. Demand for housing remains high, and the majority of borrowers are owner-users rather than pure investors. Hence, they prefer to pay the monthly instalments even in times of financial stress.
We do not see banks being in a hurry to raise home loan rates until they see definite signs of overall interest rates in the system hardening.
FII Investment in Indian Equity – Analytics Data
Over the past few weeks, we have been working on compiling data on FII interest in BSE 500 stocks as they are still the major reckoning force in our market.
After going through various sources, Annual Reports, Company Filings with BSE, etc we were able to mine the data on FII Holding in Indian Equities at the end of Sept-2009 and few other quarters as well. (more…)