Indian Equity Research and Investment Strategy
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Max Life Insurance – Revised Deal, Positive for Max Financial
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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 ?
Unprofessionally managed Adlabs owned by Anil Ambani has suffered its first setback in the Bollywood – RGV’s Aag is a flop show. RGV is said to have lost Rs 15 crore whil Anil Ambnai’s AdLabs is expected to lose Rs 7 crore only on this film.
AdLabs could have been more careful while risking shareholders money, but unfortunately they were not. So weigh every penny before you invest with such companies.
India’s top bus and truck maker, Tata Motors’ vehicle sales in August fell 0.4% to 45,144 units from 45,325 units a year earlier. Commercial vehicle sales in the domestic market rose 1.6% to 23,431 units from 23,069 units a year earlier, while sales of cars and utility vehicles fell 5% to 16,620 units. Exports in August 2007 rose 8% to 5,093 units from 4,715 units a year earlier.
Chairman Ratan Tata confirmed on Friday, 24 August 2007, that he is interested in acquiring Jaguar and Land Rover from their parent, Ford. Tata’s interest in Jaguar and Land Rover stems from a desire to expand Tata Motors’ global presence.
ICICI Direct has recommended a BUY on Adhunik Metaliks with a price target of Rs 90 within 3 Months.
AML is implementing a capex programme that would change its business profile from a secondary steel manufacturer to an integrated steel player with linkages across the entire value chain from critical raw materials such as iron ore and coal to value added steel products. The company is executing an expansion plan that would almost double its capacity from 250,000 tpa to 440,000 tpa by 2008. The company is integrating backwards with captive ownership of critical raw materials, viz. iron ore and coal mines which would enable it to withstand pricing pressures and face competition better compared to its peers.
The company reported a top line of Rs 735.76 crore and bottom line of Rs 77.48. In Q1FY08, sales grew 21.86% y-o-y to Rs 208.12 crore, while bottom line grew 14.22% to Rs 17.75 crore. During the quarter under review, the company acquired Orissa Manganese & Minerals Pvt Ltd as a 100% subsidiary, which has mining rights with reserves of 15 million tonnes for manganese ore and 35 million tonnes for iron ore. The integration and acquisition of mines would drive the company’s top line at a CAGR of over 40.70% during FY06-09E to Rs 1,180.37 crore and bottom line at a CAGR of around 59.58% to Rs 137.00 crore.
At the current price of Rs 76, the stock is trading at 6x the FY09E EPS. The stock has the potential to touch Rs 90, an upside of 20%. Another research analyst, tracking this stock expects a price of Rs 95- Rs 105 on conservative basis.
Financial services firm Cholamandalam DBS Finance announced during the market hours today, 3 September 2007 that it has approved the issue of three rights shares for every eight shares held in the company at Rs 140 each. The total rights issue size is Rs 200 crore.
Net profit of Cholamandalam DBS Finance rose 136.83% to Rs 8.36 crore on 177.41% rise in operating income to Rs 168.11 crore in Q1 June 2007 over Q1 June 2006.
Freshtrop Fruits advances ahead of board meet for bonus. The company that its board will meet on Monday, 3 September 2007 to consider the issue of bonus shares.
Citigroup Technical Research has put a short term BUY recommendation on Tata Metalik with a target price of Rs 164. CMP Rs 147.
Tata Metalik has seen a bullish breakout from a “Triangle” pattern. Construction of triangle is T#1 Upper Boundary and T#2 Lower Boundary. Prices have closed above the breakout level (T#1) at 136; breakout was supported with rise in volume
The minimum price objective has been calculated using the “maximum depth” technique. Maximum depth within the triangle is distance between # 152 (P1) and # 124 (P2), 152-124=28. Adding 28 to the breakout level at 136 gives us a minimum price objective of 164 [28+136].
Short-term Buy (1B) with target price of 164 and stop loss price of 134 (on a daily closing basis)
Maruti Udyog said it sold 65,958 vehicles in August 2007, up 27% from 51,855 vehicles sold in the same month last year. The company sold 60,229 units in the domestic market, up 25% percent from 48,259 units a year earlier. Maruti’s exported 5,739 units, up from 3,596 units last year.
Maruti Udyog’s net profit rose 35.2% to Rs 499.60 crore on an 25.8% rise in sales to Rs 3930.82 crore in Q1 June 2007 over Q1 June 2006
JSW Steel announced that the company has posted the highest ever crude steel production with 32% growth in August 2007. The company has created a new milestone with the highest production record in the month in all product categories except galvanized product.
The company has also shown 21% growth in volumes sequentially in crude steel, 11% growth in hot rolled (HR) Coils and 19% growth in HR plate products in August 2007 over July 2007.
JSW’s net profit rose 151.2% to Rs 427.78 crore on a 37.2% increase in sales to Rs 2190.72 in Q1 June 2007 over Q1 June 2006.
