Category: Economy, Markets and Macro Views

Colgate’s business has demonstrated strong growth over the 8 quarters, with sales growing in excess of 15%. It has gained share in rural areas through its “Cibaca” brand. Colgate has recently increased its focus on other personal care products (hand wash, shower gels), which though currently coming off a small base, set the tone for the next growth opportunity.

With major capital expenditure behind it, and incremental tax and excise savings from its new plants, cash generation is likely to accelerate. (more…)

Are you worried about sky rocketing fuel prices ? You wouldn’t be, if you are a shareholder of RIL. Mukesh Ambani’s intelligent move to bring in Chevron was one of the cleverest moves to create wealth for RIL shareholders. RIL is a cash rich company and it could have gone solo for the Reliance Petroleum Ltd [RPL] project, instead in the usual Ambani style it is creating wealth on others money 🙂

RIL held 75% and Chevron held 5% in RPL, remaining 20% is being held by others. RIL has acquired the shares at various prices with effective purchase price around Rs 20. It sold 4.01% stake in RPL at Rs 4023 crore thus making a profit of Rs 3662 crore for RIL shareholders.

Now according to IPO offering for Chevron, the latter has an option to (more…)

As per estimates, the global equipment supply situation is expected to remain tight in the short to medium term. Global manufacturers such as Alstom have upgraded their global capacity addition estimates. There is a 28% deficit between target and MW under construction/commissioned for the XI Plan with 92% of this gap of 21,783MW in thermal capacity addition in India.

UBS upgrades BHEL’s earnings estimate to Rs 66.66 and Rs 94.7 (more…)

Lehman Brothers, was the first one to Downgrade the Indian IT companies and we were the first one to report it here. Lehman has now come up with recommendations on the Indian FMCG space.

They have recommendations on Asian Paints, Dabur India, Marico Ltd and Godrej Consumer products Ltd. (more…)

5Paisa/Indiainfoline has initiated coverage on ICSA India Ltd with a BUY Rating. ICSA, offers products and solutions for power, oil and gas and the water segment, has developed products and solutions to arrest losses during transmission. Apart from conventional products, it developed Intelligent Cathodic Protection solutions (iCAP), Intelligent Automatic Meter Reading (IAMR), Intelligent Automatic Water Reading solution (IAWR) and street light monitoring control systems.

With the introduction of newer and better products, expect the company’s operating margin to expand. This will be supported by patents for three of its products, which could lead to improved realizations. We expect operating margins to sustain at 26%, an improvement of 140 bps by FY09E over FY07.

ICSA’s revenues and profits have registered high growth of (more…)

HDFC Securities is bullish on the prospects of Shree Ganesh Forgings Ltd [SGFL]. They recommend to Buy at CMP & add on declines in the price band of Rs. 95-100.

SGFL manufactures a wide range of forgings including flanges & fittings catering mainly to industries like Oil & Gas, Petrochemical & Pharmaceutical, which together account for almost 75% of the total revenues. Through the recent 100% acquisition of profitable companies viz; Hertecant (European manufacturer of flanges & fittings), & ELFE, France, SGFL’s sales & PAT could improve significantly & improve its overall global presence. SGFL is in the process of doubling its forging capacities from 11,000 MT to 22,800 MT at the existing location at Pawne, Navi Mumbai, by installing two new forging press lines of 2,500- MT press & 4,000- MT press, & an addition of 48 Automated CNC robotic machining lines, which will increase the machining capacity by 300%. (more…)