Category: Equity Research

TCS Revenues increased ~3.1% QoQ to $1.7bn – constant currency growth was ~4.2%. Revenues are in line with our expectations but may disappoint bullish expectations post the strong Infosys top-line numbers last week. TCS’s results confirm our thesis of broad-based growth across verticals. Even ‘weak’ verticals, such as manufacturing and telecoms, grew 3% QoQ each in line with the company’s growth. (more…)

Indraprastha Gas Ltd is expected to thrive on the back of higher scope for penetration, sustaining conversion rate and price advantage. Volumes to double in next 5 years backed by low CNG penetration in Delhi (13% of three & four wheelers) and expansion into Noida and Ghaziabad markets. Will benefit from Increasing CNG variants being introduced by (more…)

Anand Rathi has initiated coverage on HSIL with a BUY Rating. HSIL leverages its strong brand and wide distribution network by selling
complementary products (in the bathroom and kitchen ‘solutions’ category) garnered through a strategic tie-up or manufactured by
it.

India’s largest sanitaryware player with a 40% market share, HSIL could (more…)

Magma Fincorp (Magma) is one of the larger non-banking finance companies in India (Rs94bn AUM). It has a diverse funding suite of CVs, cars, construction equipments, SME and tractor loans. It has recently entered into a JV with HDI Gerling of Germany for setting up a non-life insurance subsidiary in India. While Magma is a relatively diversified business, comparable listed peers would be SREI, Shriram Transport, Sundaram Finance.

Business Operations – Balance sheet loans formed only 30% of total (more…)

Morgan Stanley has charted a Low Risk, High Return Strategy for the Indian Equities which are likely to return positively in 2010. However, the rate of return is likely to slow over the 2009 levels. In that context, stock picking is likely to be the key to portfolio returns.

The influence of macro in determining the behavior of stocks best measured by the correlation of returns from individual stocks (market effect) with the market has been declining since its peak in May 2009. (more…)

Property prices, especially in the residential segment, are fast approaching peak levels, and in some markets such as Mumbai, they are already above previous highs. Correspondingly, FY10 has been the best year both in terms of pricing and volumes for a number of developers across markets. However, stock prices have not reflected this, with the BSE Realty Index still at Oct-08 (Lehman) levels and 60% below the peak, vs Nifty at 15% off its high. (more…)