Category: Economy, Markets and Macro Views

Divi’s Labs, is a hot favorite for fund managers in Reliance and HDFC Funds. Citigroup and CLSA are optimistic on the performance of Glenmark post separation of specialty and generics business. Glenmark also unveiled a plan to structure its branded & generic businesses as separate entities, with the latter to be listed separately. The restructuring would serve Glenmark well over the long term, given the growing traction & completely diverse natures of the 2 businesses.

Citigroup in its report has raised FY08, FY09 and FY10 base business EPS estimates by 16%, 10% and 15% respectively, as Glenmark raised guidance materially on the back of growing traction in key markets. It has set a new stock target (more…)

A month after Lehman Brothers downgraded Indian IT companies, Citigroup Analyst gathered the courage and downgraded the earnings target. We had also said that a downgrade was necessary which has come a bit too late.

Here are the new Target prices for Infosys, Wipro, TCS, (more…)

Pantaloon Retail (PRIL), the largest and the fastest growing retail play in India, has best anticipated the Indian retail revolution.

It has reported strong revenue growth of 80% at Rs10.9bn, EBITDA of Rs956m and PAT of Rs297m during Q1FY08 (double the adjusted profits for Q1FY07). PRIL now reaches out to 6m sq. ft. of retail space spanning across 32 Pantaloons Outlet, 68 Big Bazaar, 98 Food Bazaar, 4 Home Town outlets (more…)

Reliance Petroleum implies an asset value of $4,129/complex-bpd – 2.4x those of its US-peers and a 50-70% premium to even the most expensive refinery new-build quotes in the market ($2,500). While such a premium recognizes its superior earnings potential because of lower capital costs and taxes, even on earnings-based multiples RPL appears fully priced relative to its peergroup at 10.9x P/CE and tax-benefit-adjusted 9.9 EV/Ebitda calculated on FY10 estimate.

CLSA in its research report said, RPL trades at a further 20-50% (more…)

Kamat Hotel posted surprising results for the quarter ended Sep 30, 2007 with 377% growth in bottomline. Topline saw a growth of 54% to 33 crore as against 21 crore last year. Kamat Hotel posted excellent numbers in a limp quarter for hospitality sector due to high occupancy rates in its Mumbai hotels and was able to keep average room rates(ARR) for the quarter above previous full year average approx by Rs 1000 on the back of firm demand. Company was also able to improve its operating margins by 488 basis points by improving on other operating costs by 276 bps and controlling employee cost by 173 bps.

Kamat Hotel was able post a 54% increase in topline at (more…)

Here is a few small cap recommendations being made on the fundamentals as well as growth prospects of companies with good management and which are quoting at decent PE multiples.

Vinati Organics:
Vinati Organics Ltd (VOL) has been operating in the chemical manufacturing industry since 1992 and has successfully implemented technology available to only few in the world. VOL primarily produces IBB (Iso Butyl Benzene) and ATBS (2-Acrylamido 2 Methylpropanesulfonic Acid). Its manufacturing facilities are located at Mahad and Lote Parshuram, Maharashtra.

In Q2FY08, VOL has reported net sales of Rs. 37.21 vs Rs. 18.67, (more…)