I found this slide in one of the presentations by Citigroup and thought will share it with you. This depicts the current state of Indian Economy. (more…)
Category: Economy, Markets and Macro Views
Research on Indian Economy, Markets and Macro Indicators
BPCL + HPCL + IOC – SELL – Goldman Sachs
On the back of fuel pricing reform is unlikely at this stage, Glodman Sachs has come out with a bold report to SELL all the 3 Oil Marketing companies – BPCL, HPCL and Indian Oil.
The government will bear all cooking fuel losses while auto fuel losses would be shared by state-owned upstream companies and oil marketing companies and the proportion of subsidy sharing is not known.
The government has actually been bearing more subsidy than just cooking fuel losses since FY08, implying that its subsidy share will reduce going forward. It is possible that government is trying to reduce further issuance of oil bonds in order to reduce fiscal strain, in our view. (more…)
GMR Infra – Fund raising post QIP failure a surprise
GMR Infra shared its vision to grow at a rapid pace and with a hurdle rate of 16-18% IRR from new projects. The management believes dividends from InterGen would be sufficient to pay off acquisition debt.
GMR Infra revealed plans to raise a whopping INR75bn over FY10-12 even as medium-term requirement for projects under development is only INR28.5bn as per GMRI’s estimates. (more…)
Allahabad Bank – Re-rating in th offing – Reliance Equities
After Quick Gun Murugun’s recommendation on Oriental Bank, yesterday its time to review Allahabad Bank today.
In the last few quarters, Balance-sheet restructuring both on the liabilities and the asset side will aid margin improvement. Fee income is set to gather traction, given the thrust on fee income and implementation of the bank’s core banking solution (80% business is currently under CBS). The bank’s conservative approach of putting cyclical treasury gains to good use, shoring up the provisioning buffer and wage revisions should hold it in good stead.
After a subdued FY09, when earnings declined 21%, Analysts expect (more…)
Oriental Bank of Commerce – Quick Gun Morgan’s Recommndation
Quick Gun Morgan, the Leading Researcher for other Western Financial institutions, has started its coverage on the long forgotten Oriental Bank of Commerce – OBC. In a report released just minutes ago, Murugun emphasizes on OBC’s net interest margin (1.8% in QE-Jun 09) is the lowest in their coverage universe. Its margins have declined by two percentage points since F2004 primarily due to a collapse in bond spreads.This trend is (more…)
UBS – March 2011 Sensex Target 20,000
The days of putting targets on BSE SENSEX are back. Despite the 100% rally from the bottom in Indian markets, fundamentals and liquidity are likely to support higher valuations. Indian stocks are likely to re-rate further over the medium term as positive data points relating.
The earnings estimates for the Sensex indicates 4% growth in FY10, 22% growth in FY11 and 21% growth in FY12. It is estimated that, strong earnings growth for pharma, (more…)