Indian Equity Research and Investment Strategy
Indian Equity Research and Stock Recommendation
As Lyondell-Basell (LB) announced that it has reached a settlement with unsecured lenders for a consideration of US$450mn, will aid the company to emerge from Chapter 11 bankruptcy. LB acquisition does have strategic merit for RIL, but the bid not going through would be a better outcome than RIL getting drawn into a bidding war and eventually over-paying for the assets.
Mukesh Ambani’s Thirst for Inorganic Growth – RIL will look to pursue inorganic growth, since see no major (more…)
In continuing our coverage on the Indian Capital Goods Space, we present to you the latest views on the street.
BHEL – BHEL’s order book at the end of 9M FY10 stood at Rs1,340 bn, recording an 18% yoy growth rate. This is significantly below the yoy growth rate of 37% at end-FY09, reflecting increasing competition and unfavorable base effect. Surplus equipment supply in the domestic market is likely by FY2012, leading to pressure on pricing. (more…)
Goldman Sachs Equity Analysts in a report released just a while ago on the Indian Capital Goods sector express the SELL-OFF has created an opportunity to BUY Capital Goods / Infrastructure stocks as the entry levels are attractive. We present to you mix of Goldman and Merill’s Views on select stocks for investment consideration.
The Indian infrastructure sector as we believe spending on this sector is increasing at a rapid pace, offering substantial asset growth opportunities. Execution has improved, but (more…)
Lupin has received FDA approval for four strengths of generic Lotrel (amlodipine and benazepril combination). Lotrel, a Novartis product, is protected by one OB listed patent – ‘802, expiry in Dec’17. At that time, the Lotrel market size was roughly $1.4 bln.
Generic Lotrel is clearly a lucrative product for Lupin, where the upside will depend on the timing of launches by other players. For Lupin Labs, Morgan Analyst assumes $40 mln sales for Lupin in F11 (based on a five (more…)
Here is a study to compare the market value of listed investments of companies with their own market capitalisations. The objective is to identify stocks where the capitalisation of holding companies may have lagged the increase in value of listed investments. The analysis also ignores factors like holding company discounts, liquidity issues, etc
There could be other issues (liquidity, large debt, operational issues to name a few) which may have led to a company trading at a discount to value of investments (more…)
Post somewhat disappointing results from India’s Largest Bank, the State Bank of India analysts believe that going forward, the bank has to only get better, though it maybe gradual process.
SBI’s headline profits were 5% below our (and consensus estimates); operationally too, it lacked meaningful direction. While there are signs of improvement – expansion in net interest margins, further improvements in deposit mix and healthy fee income growth. (more…)