Category: Economy, Markets and Macro Views

India’s Economic Growth story can be grouped into three phases. (1) Prolonged below-trend growth period – 1998 to 2003. (2) Acceleration to Overheating Zone – 2004 to 2007; (3) Reverting to sustainable growth rate. We believe the underlying sustainable growth rate currently is 7.5-8% – the level at which the risk of overheating is low. (more…)

Though the revenue growth was good in this quarter, operating margins for the company were hit due to higher investments in the newer businesses. Going forward the growth in the cigarette business of the company will be severely impacted due to the recent changes in the excise duty structure in the Union budget. However, there might be some near-term strength due to migration of consumers from unfiltered to the filtered segment which would result in the company reporting strong numbers in the next few quarters. (more…)

Bharti Shipyard is expected to sail through Tidal Times mainly due to jump in steel price and jump in working capital due to delivery delays and need to keep higher raw material inventory.

Bharati has order backlog of 5.6x FY08 sales and has its yards full till mid FY11. Significant quantum of repeat orders, robust financial of key customers (more…)

Riddhi Siddhi [RSGB’s] 500 TPD maize-crushing plant at Uttarakhand has successfully completed trial runs and has commenced commercial production. The Uttarakhand plant is state-of-the-art and has been built with inputs from Roquette Ferres, which is one of the global leaders in maize starch and its value added derivatives. It was built at a cost of Rs.1.2 bn.The plant would be able to provide timely and effective service to its large number of corporate and institutional clients who have set up facilities in Uttarakhand and Himachal Pradesh. (more…)

India’s leading IT company Satyam Computer services is facing charges of Fraud by UPaid in a Patent Dispute involving hundreds of millions of dollars.Here is the sequence of events that has happened in the last 12 years with Upaid. (more…)

In a report released just minutes ago, HSBC has reiterated its OVERWEIGHT rating on Dabur India. Dabur is one of the least expensive consumer stocks in India and trades at an 18% discount to peers on PEG basis. (more…)