Category: Economy, Markets and Macro Views

Sesa Goa reported standalone PAT of Rs1.4bn, 55% lower YoY on a sharp decline in realizations. While operating profit margin fell sharply to 23% in 2QFY10 from 45% in 2QFY09, higher other income at Rs891m (+86% YoY, 2x our estimate) helped raise the EBITDA margin to 43% vs 50% last year.

2Q iron ore sales rose 17% YoY to 1.6m tonnes, much lower than 4.7m tonnes in 1Q (Goa sales fall during the monsoon). In FY10, we assume a 45% volume growth (more…)

HSBC Investments has released the pics for this Muhurat Trading. Most of the stocks picked by HSBC are quoting at P/Es of 10 for FY2011 earnings. The 10 stocks that made it to the list of this FII are as follows.

BEML Ltd – P/E of 11.1x on FY2011 expected earnings

Brigade Enterprises – P/E of 17.5x on FY2011 expected earnings [We are not comfortable with this stock] (more…)

We have breaking news for you that Asian and Indian Market mover, Morgan Stanley research has revised the BSE SENSEX earnings and target yet again on the back of current strong earnings reported by corporates.

You MUST first read our exclusive coverage about the changing estimates of BSE SENSEX earnings and target by various FIIs in India. In today’s report, Morgan Stanley analyst says that Revenue growth seems to have bottomed out and industrial growth is likely to recover sharply in the coming months. (more…)

India will continue to remain one of the preferred long-term investment destinations. While the broad market indices and most large caps are trading already in the ‘fair to expensive’ zone, investors will keep spotting value in some of the relatively less-known pockets. Growth phases typically reflect strong preference for mid-cap stocks. At the moment, however, large – cap stocks are at a significant premium compared with mid-caps, which should reduce with (more…)

NHPC the Green Energy producing company is on the eyes of stock analysts now. Analysts at BNP Paribas have started covering the company’s Carbon Credit Story which we had told during the time of its IPO.

Unlike Dirty Energy companies like – Reliance Power, Adani / IndiaBulls Power, NHPC projects are allowed to sell Carbon Emission Rights (more…)

This is the second part of two post series. In the first part we have already covered what happens if RNRL Loses the Court Case against RIL. In this post we shall cover what will happen to RNRL stock price on the company winning the case.

Scenario II – RNRL wins the court case
There can be four scenarios on this front.

Scenario A: (No opportunity loss on gas availability and Marketing Margins in line with GAIL- US $0.135/mmbtu) (more…)