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 ?
Bharat Bijlee’s [BBL] numbers though good appears to indicate moderate growth.BBL reported 11% growth in Q4FY08 to Rs.1.9 bn. On a sequential basis, revenue growth was strong at 79% QoQ. In the third quarter, the company had suffered loss of production on account of the capacity expansion work being carried out at its facility. Hence, the fourth quarter also had some revenue spillover of the previous quarter. (more…)
Voltamp Transformers 4Q08 net sales grew 10% yoy to Rs1.35bn, 18.3% lower than our estimates. For the year, they rose 36.9% yoy, to Rs5.55bn, 5.2% lower than estimated. Expect the company to clock sales of Rs8bn and Rs10.7bn for FY09 and FY10, at a 39% CAGR. The value of confirmed orders on hand for FY09 is Rs4.5bn. Capex (relocation to Vadodara) planned for FY09 is Rs350m. The expected transformer manufacturing capacity by FY10, postexpansion, is 13,000 MVA.
For the year, PAT more than doubled, to Rs799m (shooting up 102.3% yoy, at just 1.3% over our Rs789m estimate). The exponential growth was fuelled by significant savings in material costs, which nosedived 580bp yoy. For 4Q08, the company reported PAT of Rs217m, up 59.7% yoy (5% above our expectations). Revised PAT estimates for FY09 and FY10 stand at Rs1bn and Rs1.4bn, a 30.4% CAGR.
Punjab Tractors (PTL) for Q4FY08 reported robust 105% YoY recurring net profit growth to Rs267mn on low base (Q4FY07 was affected post the acquisition by Mahindra & Mahindra due to restructuring exercise undertaken, which included sharp reduction in inventory & debtors).
Revenues rose 29.5% YoY to Rs2.9bn on the back of 23.8% YoY volume growth – domestic volumes rose 23% YoY and exports surged 63.6% YoY. In Q4FY08, the company registered market share gains of 240bps YoY to 10.5%. EBITDA margin rose 400bps YoY and 50bps QoQ to 13%, driving 87.8% YoY EBITDA growth.
For FY08, the company registered muted revenue growth of 2% on the back of 6.6% sales volumes decline; it also lost market share 20bps to 9.1%, registered EBITDA margin contraction of 160bps to 10% and 7% decline in recurring net profit to Rs652mn.
Post restructuring, the company seems to be back on TRACK. Existing Investors can HOLD.
Here is a chart provided by Sharekhan about returns in Indian Indices in May of every year from 1998 to 2008.
Months Index returns (%)
May-98 -9.05
May-99 13.61
May-00 -1.89
May-01 3.65
May-02 -5.41
May-03 7.23 (more…)
The markets seem to be in correction mode and it is really difficult to recommend a stock. However, Nomura Securities has initiated coverage on Green and Clean Energy giant – Suzlon energy with a STRONG BUY.
Growth in the global wind industry continues to accelerate, driven by climate concerns, energy security, increased electricity demand from developing countries and improvement in yields. The cumulative installed wind power capacity is forecast to grow from 94GW in 2007 to 288GW in 2012F, a CAGR of 25%. Energy Law is targeting 20% of energy from renewables by 2020F and in the US the Renewable Portfolio Standard (RPS) means that 21 nations have mandates to generate 10% to 20% of their energy needs via renewables. (more…)
American Financial Crisis, Historically High Oil Prices and the worst factor for Indian economy is Business Inflation – The rising cost of doing busines, together have all triggered the downgrading of Indian Equity Markets by Citigroup. In a report released just minutes ago, (more…)
