Category: Economy, Markets and Macro Views

On the 17th of November, we initiated coverage on Gitanjali Gems Ltd. Now, HDFC Securities has initiated coverage on Gitanjali Gems and Pioneer Distilleries with a BUY rating.Gitanjali Gems Ltd [GGL] is an integrated diamond and jewellery manufacturing company with a leading position in India. The Indian gems and jewellery market was Rs 602 bn [2006] with organized retail at 2.9% at Rs 16.8 bn. The organized jewellery market is expected to grow at CAGR of 40% to Rs 64.5 bn in 2010.

GGL has 12 branded jewellery verticals including sub-brands positioned across various segments. Strong retail and distribution networks support the jewellery brands and products across India. GGL has 112 distributors across the country with approximately 1,250 outlets. (more…)

India derives more than 37% of its primary energy requirements from hydrocarbons (crude oil and natural gas). Of the 165 blocks offered in the six rounds of NELP, 102 have been offshore blocks. This offering has resulted in a huge capital expenditure planned for the offshore segment.

Garware Offshore Services Ltd (GOSL) currently has four Anchor Handling Tugs – cum – Supply Vessels (AHTSV) and three Platform Supply Vessels (PSV). Further, it has embarked upon an aggressive capex plan to acquire two PSVs, two 60-T AHTSVs and one construction barge (on lease). (more…)

The Indian GDP numbers for Q2 FY08 are out. It is up 8.9%. This was in line with expectations given the deceleration in manufacturing activity in the rate sensitive sectors. Given that banks have started lowering their lending and deposit rates and that inventory is getting cleared, we expect manufacturing activity to pick up in the coming months and are thus maintaining our full year estimate of 9.3%.

Agriculture growth came in at 3.6% – given the good monsoon we expect trends to remain favorable. Overall industrial growth was 9.1%. (more…)

Lehman Brothers Equity Research has initiated coverage on India’s largest Real Estate company, DLF with an OVERWEIGHT rating. DLF is well poised to capitalise on the sector’s bright prospects. Rapid asset turnover has the potential to drive its financial performance. Lehman expects DLF to maintain its leadership in the sector due to the size and quality of its landbank and strong position in the high margin commercial/retail segments.

DLF’s landbank which, both in size and quality, is ahead of its peers. Execution capabilities demonstrated in its landmark projects and relationships with leading retail brands and corporates. Large proportion of (more…)

Sunil Hi Tech Engineers Ltd (SHEL) is a niche player in the power sector that builds, maintains and refurbishes power plants. The company also sets up transmission and distribution (T&D) substations, control rooms and erects super structures for steel, cement, aluminum, refineries and gas-based plants.

Almost 60% of the current power capacity is to be added in next five years. The Government has also planned ultra mega power projects (UMPP) with a capacity of at lest 4000 MW each. More than 90% of the revenues of SHEL (more…)

Indiainfoline has initiated coverage on Graphite India Ltd [GIL] with a BUY rating. Graphite electrode is an indispensable material used in the electric arc furnace steel. The average consumption of graphite electrodes is 2.3 kgs per ton of steel. Contract prices for electrodes have increased by 20% (more…)