Dalal Street

In early August DalalStreet.Biz had put a BUY recommendation on Amtek Auto Limited when the price was around Rs290. We still maintain the same BUY rating on the stock at around Rs320 and continue to be bullish about the prospects of the company in long term.

DalalStreet.Biz analysts are also bullish on the long term prospects of Bharat Forge Company Limited. Bharat Forge is setting up a large manufacturing facility in SEZ. It has been aggressively expanding in export markets. BUY 25% of your capacity around Rs350 and we will inform you of further developments.

We are also studying the prospects of HT Media and we will keep you posted as soon as our research on the stock is done.

Thanks and Happy Investing.

Logistics, Retail, Telecom and IT are likely to be the star performers in India Inc for Q2. In a research report published by ILFS,[PDF] Logistics is expected to report a rise in YoY sales of 232% followed by Retail expected to report 70.2% rise in YoY sales. IT is expected to report growth of 39% and Telecom 36%.

ILFS favorite picks sectorwise are as follows.
Logistics:
Gateway Distriparks and Allcargo Global

Retail:
Pantaloon Retail (India) Limited and Shoppers Stop.

IT:
Infosys Technologies Limited, TCS, Wipro (My favorites are Satyam and HCL Technologies)

Check out the entire report here.[PDF]

India Invest , Q2 Results , Dalal Street

The Indian IT industry is expected to announce a rock solid quarter for Q2. Infosys results are expected on 11-OCT-2006. IT companies are expected to grow 8.8% QoQ and analysts at JP Morgan have set some high expectations from Infosys, 11% QoQ.

CLSA has outperform on Infosys and Wipro and underperform on the rest(Satyam, TCS, HCL Technologies). Read CLSA report here. [PDF] I personally believe Satyam and HCL-Technologies are undervalued compared to their peers. Both the companies should decisively cross $1 Billion in sales this financial year, critical figure required to bid for large IT contracts. Satyam and HCL-Tech hopefully will get re-rated very soon. Accumulate on every decline.

Disclosure: I am a small investor and hold both Satyam and HCL-Technologies.

Should India follow the Chinese Business Model for SEZs ? Here is an excellent comparison of how SEZs in China have transformed the Chinese economy. The SEZs location, proximity to Hong Kong and Taiwan was itself a blessing in disguise.