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 ?
Since we are the pioneers in giving good recommendations for IPOs backed by thorough Research, here is how OIL India IPO subscription will look like.
Retailers have an appetite of ~ 6500 cr for IPO market. OIl India Retail portion is Rs 750 cr at the upper band. So OIL India’s Retail Portion of the IPO is likely to subscribe by 8 to 10 times. All Applications of Rs 94500 bidding for 90 shares are likely (more…)
Oil India Limited engages in the exploration, production, and transportation of crude oil and natural gas onshore in India and internationally. It is India’s second-biggest state-run oil producer after ONGC.
Business Profile:
The company involves in the exploration of crude oil and natural gas in Gabon, Iran, Libya, and Nigeria, as well as exploration blocks in Yemen as part of a consortium. In addition, it offers pipeline construction and related services to third parties, including pipeline construction, pipeline cathodic protection services, and other specialized pipeline services, such as hot tapping and line tracking.
Government Disinvestment:
Post-IPO and disinvestment, the government’s stake in the company will decrease from 98.13 per cent to 78.5 per cent. The government has fixed the price band for the (more…)
Tata Steel posted consolidated revenue of Rs232.9bn and EBITDA of -Rs299mn compared to MS estimates of Rs260bn and Rs521mn, respectively, and F4Q09 numbers of Rs264bn and Rs328mn, respectively. We note that reported Teeside EBIT loss of Rs2.44bn was higher than our expectation of Rs1bn. Adjusted for the loss, results were ahead of expectation.
Ex-India business losses at the net level were down sequentially from Rs54bn to Rs30bn this quarter. At the EBITDA level as well the loss slipped just 8% QoQ to -Rs17.1bn. We find this a credible performance due to adverse steel price trends that Corus faced in the quarter, just a 57% capacity utilization in Europe and high raw materials costs due to the impact of old inventories.
This should be driven by full reflection of improving steel prices, higher capacity utilization, and full impact of lower raw material costs.
Resumption of capital flows has reduced stress on asset quality. Moreover, core revenue momentum should pick up strongly in F2H10. Given valuations, analysts believe that SOE banks are the best way to play this theme and are likely to outperform their private sector peers. We continue to like wholesale funded institutions as well.
Bond yields are moving up and there are expectations of tightening. SOE banks are now relatively immune from MTM losses, unless yields spike up more than 200 bps. Moreover, the 5 year trend of contracting spread on bond portfolios is behind us – (more…)
Since the Ground realities in the IT sector warrant caution, Morgan Stanley has downgraded Infosys Technologies from Equal-weight to Underweight.
Valuations for Infosys appear rich and near-term risk reward is turning unfavorable. Lack of visibility on ramp-ups from existing clients remains the single biggest headache for managements across IT companies. (more…)
The days of putting targets on BSE SENSEX are back. Despite the 100% rally from the bottom in Indian markets, fundamentals and liquidity are likely to support higher valuations. Indian stocks are likely to re-rate further over the medium term as positive data points relating.
The earnings estimates for the Sensex indicates 4% growth in FY10, 22% growth in FY11 and 21% growth in FY12. It is estimated that, strong earnings growth for pharma, (more…)
