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 ?
Aishwarya Telecom stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price of Rs 35. The stock hit a high of Rs 76.90 and a low of Rs 50.10 so far during the day.
Aishwarya Telecom had fixed the issue price at Rs 35 per equity share for its with initial public offering of 40 lakh shares. The initial public offer of Aishwarya Telecom was subscribed around 20 times. (more…)
Power Trading Corporation – PTC’s 4QFY08 results at Rs192mn were sharply ahead of estimates (Rs114mn) due to significantly higher than estimated other income. The traded volumes fell by 15.4% yoy to 1.2bn units during the quarter led by lack of surplus power and very low long term volumes of Tala project and Himachal Pradesh Electricity board.
Moreover, the operating margins fell to 0.4% during the quarter led by the lower traded volumes. During the quarter, PTC has acquired an 11% stake in Teesta Urja, a 1,200MW hydel power project in Sikkim. Additionally, the company’s subsidiary PTC Financial Services (PFS) has acquired equity stakes in a power exchange and in wind, bio mass and bio fuel projects in India. These investments have been funded by PTC from the QIP issue of Rs12bn completed in January 2008.
Just few minutes ago, HSBC Equity Research has downgraded Jindal Saw Ltd to UNDERWEIGHT. This change in recommendation comes after the back of poor Q4 results from the company. Another Jindal Group company, JSW Steel had to face the same plight earlier this morning.
Jindal Saw (JSAW) had favourable coal prices for a long time, but the inventory of this low-cost (USD100/t) coal is over, the contract for which expired in April 2008. Management guided recently that new supplies should come in only at USD300/t. (more…)
We will never recommend to Invest in PSU Refinery / Oil Marketing Stocks until the Government supports FREE pricing mechanism, of course control cartelisation like the Steel companies in India are currently resorting to. However, if you are holding Bongaigaon Refinery & Petrochemicals Ltd, which will be merged with Indian Oil Corporation, here is an arbitrage opportunity. (more…)
All though Energy / Power sector looks attractive, Kotak Sec Analyst has recommended a REDUCE on BGR Energy Systems. The company is poised to grow strongly on the back of massive investments expected in the country, especially in the power generation sector. BGR Energy has expanded the scope of its products/services to emerge as a complete Balance-of-Plant (BOP) contractor for power plants. Successful project execution and managing strong growth are key challenges.
Kotak expects revenues and earnings to grow at CAGR of 53% and 62%, respectively, over FY2007-10E, led by growth in power division. Order backlog of Rs36 bn at beginning Mar’08 provides visibility of 1.8 years based on FY2009E revenues. (more…)
JSW Steel one of the main companies behind steel cartel in India reported a PAT for 4Q excluding SISCOL, prior period taxes and write-back of misc expenditure works out to Rs3bn (-15% yoy). 4Q PAT would have been higher excl forex translation loss of Rs930m. EBITDA was Rs7.2bn (-7% yoy) and the margin was 23.1%, lower yoy and qoq. SISCOL reported FY08 PBT of Rs660m and 21% EBITDA margin.
During 4Q coke costs jumped 89% yoy to Rs19,000/t and iron ore costs rose 98% to Rs2,300/t. Costs are slated to rise further. JSTL has tied up its coking coal at US$305/t for FY09. Iron ore hikes have not yet been finalized but are likely to be in excess of 65%. JSTL has ~25% of captive iron ore and expects ~60% captive iron ore and ~45% coking coal by 2010.
Margins are likely to be hit somewhat in 1Q FY09 as prices are being maintained at current levels for the next 2-3 months. JSTL also passed on the impact of the import duty cut on raw materials by reducing prices of HRC by Rs500/t.
