Category: Equity Research

Coal India Limited (CIL), the largest global coal producer (output 431mtpa) looks well positioned to gain from acceleration of domestic coal demand. Despite its 82% market share in India, most of Coal India’s sales are at prices that represent a c60% discount to imported coal. While this seems to suggest that Coal India lacks true pricing power, this is far from the truth, as Coal India’s capital (more…)

Almost all the broking house say that the Discount on IRB Infra is unwarranted. The stock is down its from its peak of INR 313 in Aug 2010; more importantly, the stock has corrected ~25% in the last month.

The main reason for correction – Slowdown in NHAI project award since May 2010 and Delay in start of execution in the 4 projects won last year – While execution was expected to begin on all projects in Q1FY11, it eventually started on 2 projects in Q2FY11 and (more…)

Leading FII BNP Paribas has downgraded the Indian Power Sector to Negative citing Overcapacity in 2013. India is set to see an unprecedented power generation capacity addition. Can we expect India to enter a slight base-load surplus in FY12, worsening to 16% in FY13 ?

Research indicates a market-clearing price of INR4/kWh, assuming that a majority of thermal power plants operate at 70% utilisation rates. An IPP can improve utilization rates only by pricing its output at (more…)

Cutting Edge Outsourced Software Development Company HCL Technologies reported Strong revenue growth yet again with revenues at US$ 804 mn (+9% QoQ ) beating est, however balanced with operating margins down ~230 bps QoQ, ~650 bps YoYn Apps/IMS continue to driven growth (9%QoQ). Rev from Europe were up 18% QoQ with finsvcs /telecom/retail seeing +10%/10%/13% QoQ. Strong Net adds(5k+) for 2nd qtr in a row.

While gross margin at 31.6% was 50bp higher than our estimate, SG&A, which (more…)

PTC India Ltd has evolved from a pure play power trading company into a diversified and integrated entity with businesses ranging from power trading, coal trading, power project development and project financing.

Edelweiss has a Fundamental BUY on the stock with the main reason being the company’s current 18 bn kWh power trading volume in FY10 is expected to catapult 150% by FY13E and triple by FY15E to 57 bn kWh. Additionally, PTC Management wants to list PTC (more…)

As on Sept-20-2010, here is the portfolio of Jhunjhunwala Rakesh and Rekha of RARE Enterprises. Investors should know that he holds the Stocks ir-respective of short-term blips – for example – Punj Lloyd. In our study we found that he holds the stock for more than 5 years and that is how he makes a killing. However, apart from directly owning the company’s stock he is a Trader as well making money for members of his syndicate. So if you have to follow him, then Patience is the keyword. Anyway, here is his portfolio, (more…)