Category: Economy, Markets and Macro Views

Looks like every Retail Research Analyst has started chasing Vishal Retail. We will cover notes from two HSBC and ICICI Analyst who have reiterated OUTPERFORM rating on the stock.

The expansion plan of Vishal Retail is very aggressive. It increased its retail space from 88,700 sq.ft. in FY03 to 1.3 mn sq.ft. in FY07, CAGR of 94%. We expect the retail space to increase to 5.1 mn sq. ft. by FY10, at a CAGR of 59% over FY07-FY10E. The company targets Tier-2 and Tier-3 cities where there is little or no presence of organised retail players. (more…)

Genus Power Infrastructure Ltd (GPIL) has bought a 6 mega watt (MW) power generation plant from Genus Power Products Ltd (GPPL). Subsequently, the shareholders of GPPL would receive one fully paid-up share of GPIL for every 60 fully paid-up shares of GPPL currently held by them.

The 6MW plant of GPPL is based on biomass technology and the power generated can be sold as well as used for captive purposes. (more…)

Pyramid Saimira Theatres (PSTL) operates in all categories – Film exhibition – multiplexes, cineplexes and single screens; Film distribution and also in content production for TV / films. Headquartered in Chennai, it commands 44 multiplexes with 113 screens, and 590 single screens. It has now expanded its (film exhibition) business to Malaysia, China and the US. Its film exhibition model is asset-light (all the theatres are rented not owned). PSTL has recently ventured into film production and TV production by launching a subsidiary, Pyramid Saimira Productions Limited (PSPL). PSTL uses an end-to-end Digital Cinema Solution in few of its theatres, and this is set to revolutionize the distribution and exhibition system in the Indian film industry. (more…)

The first Housing Price Index data as a part of the Indian Economic Survey and provided by the National Housing Bank is as published here. Year 2001 was chosen as the base year for the statistics and is calculated only until 2005. Bangalore / Bengaluru has seen the highest rise in Realty Prices between 2001 and 2005. Yes, it is only upto 2005, further data is being collected and analyzed. Only Delhi, Mumbai, Kolkatta, Bangalore and Bhopal were analyzed. You see how the Index has risen over 5 year period in all the above mentioned cities. (more…)

Finally we have something from the House of Ruias for Indian investor that is worth mentioning. IDFC-SSKI / Sharekhan has initiated coverage on Essar Oil Ltd with a BUY rating.

Essar Oil (EOL) is on its way to becoming a vertically integrated oil company with significant presence in E&P, large presence in refining and a commensurate marketing infrastructure. A timely investment in expanding its refining capacity by ~3x to 34m tonnes and upgrading its complexity to take advantage of the global tightness in refining would be the biggest value creator for the company. (more…)

The Sun has finally set in the world’s second fastest emerging economy, India, blame it on the American sub-prime mess. With today’s fall the Long Bull Phase in India has come to an end. Insights from the three big bear markets of the past 15 years should be useful tools for investors if they have to tackle another bear market in the coming months.

The market’s decline phase is usually shorter than the bull market’s rise but post the fall, bear markets witness a protracted period of sideways movement that can be quite painful. (more…)