Cairn India’s Rajasthan resources upgraded

Cairn India (CIL) today increased its discovered Rajasthan resource base from 3.7 bn boe to 4.0 bn boe. While the 2.1 bn boe Fatehgarh formation (MBA fields) estimates have not been changed, estimates in 22 other fields (Barmer Hill formation) have been upgraded to 1.9 bn boe (1.71 bn boe earlier).

While the higher resource base is directionally positive, it requires significant work to establish new reserves in an increasingly (more…)

Educomp Solutions – Smart Class – Strong pipeline

Educomp team is well placed to meet strong demand for Smart Class implementation. Educomp’s guidance of implementing Smart Class in 2500 (FY11) schools implies installing hardware in ~50 schools per week. As EduSmart outsource nearly 50% of low end installation work to local vendors and given its ability to manage hardware installation at multiple schools concurrently, we believe the current team of 70 technicians can manage installations in nearly 80 schools per week. See minimal risk to implementation in FY11e.

The initial response to Educomp & EduSmart Smart Class advertisement has been extremely strong with school signs up exceeding (more…)

Welspun Gujarat diversifies into EPC with MSK Projects

Welspun Gujarat, India’s leading pipe manufacturing company has announced the acquisition of MSK Projects (MSKP IN, not rated) – a construction company – for a consideration of INR8bn (75% stake). Synergies from this acquisition may include – diversification into the infrastructure sector, enhancing Welspun’s ability to provide its customers with end-to-end solutions to plate-pipe-pipeline laying; and MSK Projects through Welpsun’s balance sheet support likely to bid for large infrastructure projects specifically into the road sector. MSK’s current order book of INR5bn constitutes 40% road projects.

Here is the take from various brokerages on Welspun Gujarat’s Diversification move. Kotak analysts said there will be few orders where pipe (more…)

Research Follows Hindustan Unilever Stock Movement

Instead of Research Leading the Stock Price movement, it always follows which makes it good for nothing. [Sometimes I feel that these Reports are Published purposely a day or two after the necessary price movement in the stock / Or after building favorable F & O Positions . We are doing Historical Research on the same and the findings will be published very soon here] Hindustan Unilever stock has corrected more than 15% and then the Analysts published their views. Here is why the stock has crashed when the market has hit a new 12 month high.

JP Morgan Said, (more…)

Coverage on Indian Fertilizer Stocks

Indian Fertilizer sector stocks have recovered due to the allocation of natural gas, which has reduced cost and increased utilization levels of fertilizer plants. Many of these plants ran on expensive naphtha or FO / LSHS feedstock. Closed units are also likely to open due to this cost reduction. The consumption of fertilizers in India is expected to grow by 4% CAGR till FY12. Urea is expected to witness a supply deficit of 5.4mmtpa by FY12. Phosphatic and potash fertilizers also remain matters of concern due to the lack of indigenous raw materials.

De-regulation of Fertilizer Prices – While Urea was under mandatory pricing control under the New Pricing Scheme, Stage-III, the government recommended an MRP for DAP, MOP, MAP, TSP, SSP, Ammonium Sulphate and 11 other complex fertilizers under the (more…)

Thermax Stock on Boil with Babcock – Wilcox JV

The much anticipated JV for supercritical boilers with Babcock and Wilcox was announced on 10 March 2010. The JV (51:49) intends to set up a new 3 GW per annum boiler manufacturing facility at an investment of Rs7.6 bn. Of this, equity contribution from Thermax is anticipated to be Rs1.75 bn. With sufficient cash reserves (Rs7.2 bn in 2Q), even after the Purolite settlement, Thermax should be able to fund capex through internal resources. (more…)

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