Indian Equity Research and Investment Strategy
How to Get More Returns in Mutual Fund SIP with Swing Strategy ?
Max Life Insurance – Revised Deal, Positive for Max Financial
Will the Digital Neo Banking Platforms Succeed in India ?
Should you own the Life Insurance Business ?
Does HDFC AMC deserve High Valuation ? Review
Valuation of Indian Markets & Relentless FII Selling
Why Indian StockMarket Quoting at High P-E ?
Why Value Investing Does not Work in India ?
Q2FY10 net profit of Canara Bank surprised on the upside, at INR9.1bn, up 72% y-o-y. Net interest income growth was healthy at 14% y-o-y. Credit growth has been exceeding the deposit growth for many quarters now (unlike at some of the other PSU peers where the trend is the reverse) and is the primary reason for its strong operational performance. (more…)
Den Networks is a Delhi based company was formed in 2007. The company is a leading cable television company with a pan-India presence. Within a short time span Den has reached out to about a crore households across 77 cities, mainly by buying out small cable TV operators. The company has acquired majority stake in 65 MSO’s (multi system operators) to expand its network across 9 states.
We recommend to BLINDLY AVOID the issue. Without any (more…)
Tata Motors reported PAT of Rs7.3 bn versus our estimate of Rs5.1 bn, with the upside largely driven by a higher profit on sale of investments. At an operating level, results were in line with expectations with EBITDA of Rs10.5 bn compared to our expectation of Rs10.4 bn. Higher than expected realizations resulted in revenues of Rs79.8 bn beating our Rs78.2 bn estimate. 2QFY10 EBITDA margin at 13.2% grew 520 bps yoy largely on account of price increases, higher volumes (+12.3% yoy) and lower raw material costs led by a yoy decline in commodity prices. Adjusted PAT (excluding gains from investment income) of Rs3.7 bn marginally ahead of our expectation of Rs3.6 bn.
The LCV portfolio, comprising the Ace and its variants, is now one of its most (more…)
Ambuja’s poor performance continued with profits missing our estimates by 15% on higher clinker purchases and high coal costs. ACEM’s 3Q09 PAT grew 27% YoY on account of one-offs.
Domestic volumes increased 9.1% YoY while exports declined 50% YoY. The average realisation improved 10.5% YoY and 1.6% QoQ on account of a lower proportion of exports and higher realisations in the North and East.
Costs in 3Q09 surprised negatively. Ambuja is short of clinker capacity in the East and had to purchase clinker from the market given the strong demand in the region. Coal cost per tonne was flat sequentially, as the high-cost coal inventory was fully
consumed in the quarter.
Ambuja’s EPs is expected to drop for 12-2010 to Rs 7.79 from Rs 8.25 this year (12-2009).
ACC’s Q3CY09 results were in line with our expectations. The company’s topline rose 9% YoY to Rs 19.6bn, driven by a 6% YoY increase in realisations and a 3.1% growth in volumes.
ACC’s EBITDA margins expanded 963bps YoY to 33.9% on account of higher realisations and lower power and fuel costs. However, on QoQ basis, the company’s margins contracted 139bps. The company posted an EBITDA/tonne of Rs 1,333 during the quarter.
ACC’s capacity expansion at Bargarh is expected to add 1.1mn tonnes to its existing capacities. Moreover, the New Wadi expansion project is likely to be commissioned in phases from the third quarter until Q1FY10.
ACC’s EPS is expected to FALL in CY-2010.
Dabur India reported Q2 PAT growth of 29% vs our estimates of 19% and consensus at 20%. The surprise was on account of higher gross margin expansion of 374 bps (our estimate 200 bps) as a result of benign commodity prices. Sales were up 22.7%, (volume growth of 14.2%) in line with street estimates. The company has invested substantially in supporting its brands, as a result of which ad spends are up 54%. EBITDA margin expanded 215 bps. (more…)
