Category: Economy, Markets and Macro Views

The overhyped car from Tata Motors unveiled its first design in the Auto Expo show. I am wondering if their are any specialists reading this article to enlighten me about the safety this car can provide to its passengers.
We are all intelligent investors, right ? Forget Tata Motors, lets make money by betting money on its suppliers. Here is a list of suppliers for Tata’s Small Car Project. (more…)

Sathavahana Ispat (SIL), a standalone pig iron manufacturer with capacity of 210,000 TPA is stepping ahead as an integrated pig iron producer. It has commissioned 300,000 TPA of metallurgical coke and is on the verge of completing a 30 MW waste heat based power plant.

The company is setting up 30 MW cogen power plant. As it is waste heat based, cost of power generation is a meager Rs.1.2 per unit against selling price of Rs.3 per unit, representing (more…)

Religare has initiated coverage on Gremach Infrastructure with a BUY rating. Engaged in the business of leasing out construction and mining equipment. Strong government thrust on infrastructure development coupled with Gremach’s timely equipment acquisition (capex of Rs 1.3bn) will drive a revenue CAGR of 62% CAGR over FY07-FY09. Aggressive forays into onshore oil rig rentals, SEZ development and coal mining would fuel the next phase of growth for the company. (more…)

It is always advisable to withdraw some money from the market. Kotak Securities is advising investors to nook profits in GATI and Citi is advising clients to take money off of Hindustan Constructions. The basic reason behind these two ratings is the run up of the stock in short span and prices prevailing above their targets.

Kotak on GATI:
GATI has acquired 73.7% stake in Delhi-based cold chain logistics firm Kausar India (Kausar). Initially it acquired 52.96% stake in the company. Subsequently it came out with an open offer as per SEBI regulation and acquired another 20.76% @ Rs. 72.84 per share. As of now earnings estimates for GATI is EPS of Rs. 4.6 for FY08E and Rs. 6.7 for FY09E. (more…)

Here is what various Foreign Institutional Investors think about India.
Citigroup Report says,

Given the current infrastructure deficit and above 90% capacity utilization ratios in many key industries, we expect the rapid pace of investment to continue into 2008. Consumption has slowed due to interest rate tightening, favorable demographics, increasing penetration of retail credit and untapped rural potential indicate the consumption story is still alive. India has potential to further lift its trend growth level and remain one of the fastest-growing economies in the region. But moving to a higher growth trajectory entails addressing a number of challenges.
Read On [PDF]

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Gulf Oil Corp (GOCL) is engaged in a blend of diverse business areas such as industrial explosives, lubricants, mining services and specialty chemicals, where almost 59% of revenues comes from lubricants. Strong organic growth is expected across segments driven by increased prices and robust economic growth. New mining policy will attract the investments in the sector benefiting the companies like GOCL. Government wants the contribution from mining sector to grow from current 2% of GDP to 5% of GDP in the next five years, which will boost the segmental revenues tremendously. Further, new mining contracts and venture into limestone mining will fuel growth. (more…)