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 ?
ITC reported a robust 26% YOY PAT growth at Rs10bn, above our Rs9.4bn estimate. EBITDA margins expanded >6% YOY to 35.8%, driven by steady cigarette business profitability, lower losses in non cigarette FMCG and benefits of mix improvement in the agricultural commodities business.
Personal care revenues are forecast at ~Rs3-3.2bn for FY10E, based on the current run rate. For soaps, current market share is 3-3.5% – impressive, given the recent (more…)
Aggregate earnings [SENSEX Companies Rssults Declared So Far] are up 13% YoY, a tad ahead of our analyst expectations of 12%. In terms of surprise breadth, three of these eight companies reported net profit that exceeded expectations by 5% or more, while two trailed our expectations by 5% or less. Four companies in the BSE Sensex have reported 20% growth in earnings. It is still early days to analyze the earnings at the sector level.
Broader Market Earnings Lead the Narrow Market – 212 companies have reported. Aggregate earnings for the broad market are up 24%. The sharp recovery in margins, up 5.8ppt YoY, is the key driver for the strong earnings growth. However, revenues for the sample are up 4% YoY.
It is TRUE that Many Mutual Funds have beaten the benchmark by just few percentage points while you have seen the Euphoria in stocks and they have probably given 200% to 300% returns within the last 12 months.
I decided to see which Diversified Equity Funds [No I don’t believe in SECTORAL Funds] have beaten the Benchmark Indices. The criteria for my study was simple, any fund that has seen an earlier bear market qualified for the study. I then compared NAVs recorded by these funds on Jan-09-2008 and now. Here is the outcome of the study. (more…)
L&T reported 2QFY10 net profit of Rs 5804 mn, mostly in line with consensus estimate. Execution and, hence, sales growth in the quarter were tepid due to 1) a delay in clearances for infrastructure projects, and 2) lower demand for machinery and industrial products (sales down 26% yoy in 2QFY10).
However, order inflows for the quarter were up 47% yoy, after the 22% dip in 1QFY10. Management raised its order inflow guidance for FY2010 to 30%-35% yoy growth from 25%-30% and reiterated sales guidance of 15%-20% despite the sluggish execution in 1HFY10. (more…)
Hero Honda reported recurring PAT at Rs5.97bn was ~8% ahead of expectations, driven by EBITDA margins that surprised at 18.3% (130bps ahead of expectations) as SG&A costs were slightly lower than expected.
We think margins in the two-wheeler sector are close to peak levels. We expect margins to deteriorate from 4QFY10 on account of input cost pressures. EBITDA growth in FY11E will be driven by volumes (we forecast at ~10% CAGR over FY11/12E).
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Jaiprakash Associates has posted splendid results for the quarter ended September 2009. Net profit for the second quarter of the current fiscal soared a whopping 327.89% to Rs 870.19 crore, from Rs 230.37 crore in the previous corresponding period.
Total income for the quarter in review stood at Rs 1,912.51 crore a growth of 47.26% over Rs 1,298.76 crore in the year-ago period.
The company’s board, which met on October 21, 2009, declared an interim dividend of 27%, or Rs 0.54 per equity share of Rs 2 each, for the fiscal 2009-10.
The board also cleared the proposal to issue bonus shares in the ratio of one equity share for every two shares held in the company as on the Record Date to be fixed in due course.
Jaiprakash Associates is engaged in infrastructure construction, power projects, cement manufacturing and hospitality, among others.
