Indian Equity Research and Investment Strategy
Research on Indian Economy, Markets and Macro Indicators
JBF Industries reported an excellent set of Q2FY08 numbers. The company’s earnings estimates have been revised upwards and continue to recommend BUY with increased price target of Rs.250 .
Net sales for Q2FY08 were at Rs.5.3 bn. Up by 76.2% YoY. EBIDTA margin during Q2FY08 was up by 190 bps at 14.0%. EBIDTA for Q2FY08 was at Rs.742 mn up by 72.0% YoY and PAT is at Rs 571 mn up 68%.
Dishman Pharma reported an inline Q2 ended Sept-30th. Sales up 59% and PAT up 67%, although YoY figures are not entirely comparable given that Carbogen Amcis (CA) was present only for 1 month in 2Q07.
Management expects significantly large contract wins from Solvay over the next few quarters. Dishman has recently increased capacity for Solvay; Vitamins business buyout from Solvay to be effective by October end; 8 projects from CA have been transferred to India.
Our on-the-ground checks with industry participants suggest greater evidence of a slowdown – which also seems to be spreading to the office segment in some cities – in property transactions/prices. And many property firms’ diversification
into telecoms is also discomforting. (more…)
A colleague of mine told that a Research Analyst working with a famous Australian brokerage house active in the Indian market, compared in his analysis Rolta India an IT company to L&T to raise the Target price of the stock. We all know that Engineering & Construction stocks enjoy far superior rating in this Bull market than IT stocks.
(more…)
Megasoft Ltd reported good set of numbers for the 3Q of CY07; consolidated revenues for the company stood at Rs.768mn, with Visual’s contribution being Rs.180mn. The consolidated PAT stood at Rs.163mn. The company witnessed healthy traction in the telecom products segment and margin improvements across both products and services. (more…)
After the consolidation of Low Cast Carriers in India, the immediate beneficiary is Jet Airways. The domestic passenger and cargo traffic recorded a growth rate of 44.6% and 8.7%, and the international passenger and cargo traffic recorded growth rates of 15.8% and 13.8% respectively during 2006-07. Domestic air travel in India is predicted to grow at 20% over the next five years.
Jet Airways with a fleet size of 80 aircrafts (including JetLite’s 14 aircrafts) is the second largest carrier in India behind the Air India & Indian combined fleet of 132 planes.