Category: Equity Research

There have been a few investor queries on STPI extension, going into the Indian budget (July 6). In this note we look at various scenarios and its impact on tier-I companies.

STPI extended but no change in 10-year clause [Tax benefits expire for STPI units completing 10 years of operations or Mar’10 whichever is earlier] This is what happened with the extension last time. If that happened, (a) Infosys would (more…)

Kotak Sec has initiated coverage on Time Technoplast with a BUY rating. IT is a market leader in the industrial packaging segment with more than 75% market share. These are used as barrels or containers for packing by users in specialty chemicals, paints, inks, pharmaceutical intermediates, FMCG intermediates, construction chemicals, additives, lube oils and food industry among others.

The company has a technical collaboration with Mauser Germany for packaging products. TTL has key strengths in polymers, technology and innovation. Based on this, it has successfully diversified into high-end polymer based innovative applications for (more…)

On the back of the FDA’s product seizures at Sun’s US subsidiary, Caraco on June
25th, Analysts across the street have lowered revenue and earnings estimates by 8-10% across FY2010E-2012E to reflect the impact on Sun’s US sales. (more…)

The UPA government’s focus on increased investment in infrastructure, education and healthcare will likely drive demand for Sintex’s building products segment. We believe higher allocation to schemes such as Bharat Nirman, Sarva Siksha Abhiyan and other similar schemes will drive demand for pre-fabricated structures and monolithic
constructions. Signs of early revival in the economy indicate faster growth in demand for composites from the automotive and electrical industries. (more…)

According to a report by Goldman Sachs, the media sector is now nearer to the start of a cyclical recovery. Indeed, bottom-up data from India’s largest media spenders indicates the possibility of a sequential pickup of 10%-12% for the second half of FY2010 (ending March 2010) and a return to five-year median industry growth thereafter (which was about 14% over past 5 years).

With the digital subscription market having expanded by 29% over the past three months- with only moderate incremental pressure on ARPUs. Even with stocks under (more…)

While equity market performance has a strong correlation with RCaps’ businesses, expect growth in most businesses to lag the rebound in broader markets – in particular, expect relatively moderate growth in life insurance, non-life insurance and consumer finance segments.

RCap is seeking to sell up to a 26% stake in its life insurance business, including likelihood of inducting a strategic stakeholder. The transaction does not come under current FDI cap (100% owned) but requires other regulatory approvals. (more…)