Category: Equity Research

Hindalco Industries’ (Hindalco, standalone) Q4FY10 net revenues, at INR 54.0 bn, were below our expectation of INR 58.2 bn. EBITDA, at INR 8.35 bn, was below estimates due to preponed shutdown of copper smelter for 38 days leading to ~15 kt of lost production. However, net profit, at INR 6.6 bn, was above our estimate of INR 5.5 bn due to higher-than-expected other income and tax write-back of INR 1.1 bn. (more…)

I am pretty sure that you are calling me insane of giving a 100,000 / 1 Lakh Target for BSE Sensex. Well, it isn’t me but Chris Roberts of Mizuho Securities Asia Limited from Hong Kong. Chris in his report said that,

Our roadmap on India sees the April 1992 through September 2001 period as a completed secular bear market. From the 1992 low of 2,595, we expect a large five-wave advance to form, given that we have only completed waves i and ii of that move we (more…)

PNB reported earnings of Rs11.4bn, a +30% yoy growth (9% ahead of est.), but was only 3-4% ahead of est. if adj. for one-off gain (UTI MF stake sale). But, more importantly, core earnings sprung a surprise with operating earnings (+20% higher) driven by sharply lower opex (base effect as 4QFY09 had very high wage prov.). PNB has a buffer (wage prov. at 21% vs. settlement at 17.5%). (more…)

Union Bank of India’s 4Q10 was a strong earnings show – profits were up 28% yoy (17% above our estimates), driven by sharp NIM expansion and healthy fee growth. Core operating profits (pre-provisioning profits ex trading gains) were also robust (+65% yoy). The balance sheet, however, was mixed – NPLs increased sharply, coverage levels were down, but there were improvements in funding mix and credit growth (+23% yoy). Overall, the strong NIM jump seems to have offset the pressure on asset quality; but only for now. (more…)

Lupin’s Recurring PAT was in line at Rs2.2bn (+39% YoY), driven by Antara & generic Lotrel sales in the US. Sales grew 24% YoY on the back of 18% higher formulation sales in advanced markets. EBITDA margin expanded 173 bps, despite higher R&D spend, on improved product mix (higher branded sales & generic Lotrel).

US formulations (+ 28% YoY) grew on the back of generic Lotrel launch & first full quarter of Antara sales while Japan (+18% YoY) (more…)

Indian hospital stocks have outperformed the market in the past six months (up 60% vs. 17% for Sensex) on the back of newsflow on acquisitions and a better-than-expected earnings profile for the sector. The long-term growth story still looks attractive, with demand outstripping supply however, in the near term valuations have overtaken fundamentals. Lets look into Apollo Hospitals and Fortis Helathcare stocks for Long Term Investment.

Apollo Hospitals:
Apart from the current 2,120 beds being added, Apollo has no immediate plans for fresh projects. We believe that with most of its (more…)