Indian Equity Research and Investment Strategy
India’s leading construction company L&T which has tremendous know-how in building mega power plans and projects has jumped into the business of power generation. Its 100% subsidiary L&T Power Development Ltd (LPDL) has emerged as lowest bidder to develop and operate a 1,320MW thermal power project in state of Punjab.
The project is expected to be operational only in 2014. However, on a longer term basis, we believe that it is positive because: (more…)
>HSBC Equity Research which was one of the most conservative in Indian Earnings Growth Estimates has changed its stance and has upgraded the numbers, and it has gone ahead of the DalalStreet Consensus estimates 🙂
Economic data and Growth figures likely to surprise on the upside and lead to upgrades in EPS forecasts. Market expects policy tightening in view of a pick-up in growth and inflationary pressure and this will be not be a disaster for equities; however, evidence suggests (more…)
US district court judge ruled in favor of the $2.5bn bid by Grupo for Asarco. The court, in its decision, said that Grupo’s bid for the US miner was feasible and more likely to close than a sale to Sterlite. The decision is in line with the US bankruptcy court judge recommendation of Grupo’s bid over Sterlite. Grupo would have to close the deal in 30 days.
Sterlite management is unlikely to appeal against the judgment.
We believe the usage of cash in terms of investments in growth projects, minority buy-outs, and further acquisitions remains key going forward. The final arbitration hearing for BALCO is in early December and management expects the closure of BALCO and HZL buy-outs in the current fiscal.
UltraTech Cement and Samruddhi Cement, a wholly owned subsidiary of Grasim Industries, approved Samruddhi’s merger with UltraTech. Samruddhi shareholders will receive 4 shares of UltraTech at a face value of Rs 10 each for every 7 shares of face value Rs 5 each The deal will make UltraTech, the largest cement company in India and the 10th largest in the world.
Proposed merger earnings – The given share ratio is modestly earnings accretive for Ultratech. (more…)
Motilal Oswal has picked the following 3 midcaps for investment and here is the review of all the thre.
Nagarjuna Constructions:
During 2QFY10, NCC reported revenues of Rs10.7b & net profit of Rs439m (up 3.8%YoY). EBITDA margin during 1HFY10 stood at 10.3% vs FY09 margins of 9.0%, and the management is confident of maintaining margins at 10-10.5% in FY10.NCC has witnessed a meaningful traction, with order intake of Rs46b in 1HFY10, vs initial guidance of FY10 order intake of Rs65b. (more…)
Cox & Kings (India) is amongst the oldest travel brands [is also a Global Brand] in the country offering travel (both leisure & business), forex and visa processing services. The company acts as a One Stop Shop for all the travel related needs of Indian and international travelers.
In India, tourism as a % of GDP accounted for just 6% in 2008, as compared to about 9% for the world. Thus the domestic and inbound market offers a vast scope for all the operators to expand revenues.
Cox & Kings Current IPO Details:
Face value 10
Price band 316-330
Issue opens November 18, 2009
Issue closes November 20, 2009
Retail Size – 6,403,824 Shares or Rs 211 cr
Fully Diluted Equity after the IPO – 62.92 cr or 6.29 cr equity shares of FV 10
(more…)