Category: Economy, Markets and Macro Views

One of the main beneficiaries of India Inclusive Growth Story is United Spirits as executives like to be cheerful and celebrating. It has retained margin above 17% save for a tough quarter in Q3 FY09 when OPM sank to 11.3%. Expect USL to sustain 15-17% OPM in its domestic business even as molasses price is likely to remain over Rs3,800/MT in sugar-rich UP. (more…)

The year 2009 has turned out to be a big surprise. It is on track to be the best year for markets
since 1991. [ 1991 and 2009 are Manomohan Magic Years ]

The year 2010 is expected to be a year of consolidation rather than the “boom-bust” years in the past. The last time we ended a year with a single digit move (either positive or negative) in the market was in (more…)

Edelweiss Research has initiated coverage on few growth oriented MidCaps. You must read Part-1 of the coverage here. Here is the second set of Stocks recommendation in the MidCap space.

Infotech Enterprises:
Infotech Enterprises (IEL) has developed a unique positioning in the engineering services space.One of the key positives during the recent results is the scale up of revenues from the top 10 clients. Continuous expansion in services portfolio (more…)

Edelweiss has some favorite picks in the MidCap space where it expects an improvement in top line to drive strong EBITDA growth as revenue growth outpaces costs. Stocks with high degree of operating leverage. Edelweiss’ conviction is that these stocks have a high probability of surprising on the upside over the next 1-3 years.

This is Part 1 of the Coverage and here are the stocks and brief excerpts / justification them being picked up.

AUROBINDO PHARMA:
Strategic alliance with Pfizer (PFE) for 80 products and 218 SKUs across multiple markets adds strategic depth and long-term value. Regulated sales are likely to post 38% CAGR in FY09-11E, to INR 13 bn, as ARBP is poised to benefit from current scale of filings. Expect an EPS of Rs 90 and 118 for FY10 & FY11. Maintain BUY (more…)

Over the past few weeks, we have been working on compiling data on FII interest in BSE 500 stocks as they are still the major reckoning force in our market.

After going through various sources, Annual Reports, Company Filings with BSE, etc we were able to mine the data on FII Holding in Indian Equities at the end of Sept-2009 and few other quarters as well. (more…)

>HSBC Equity Research which was one of the most conservative in Indian Earnings Growth Estimates has changed its stance and has upgraded the numbers, and it has gone ahead of the DalalStreet Consensus estimates 🙂

Economic data and Growth figures likely to surprise on the upside and lead to upgrades in EPS forecasts. Market expects policy tightening in view of a pick-up in growth and inflationary pressure and this will be not be a disaster for equities; however, evidence suggests (more…)