Category: Equity Research

The software subsidiary Siemens Information Systems Ltd – SISL, which had an extraordinary loss and increase in tax liability has impacted the results of Siemens India. The management clearly indicated that Energy, Industry and Healthcare are the focus areas for Siemens India Ltd. Siemens management further indicated that the worst of the project-related losses are behind us so far as Torrent Power project is concerned. (more…)

There has been a whisper doing the rounds for quite some time now that HDFC will go for a reverse merger with its child – HDFC Bank. However, the time seems to be right if RBI meets some relaxations sought by HDFC.

HDFC has always taken a stand that a merger with their banking associate, HDFC Bank, would make sense only if reserve requirements (Statutory Liquidity Ratio and Cash Reserve Ratio) were lower or/and if they were granted some exemptions/flexibility in meeting these requirements. (more…)

Fortis Healthcare has been able to operationally turnaround its largest hospital – Escorts Heart Institute and Surgery Hospital. The management is now focused on steering other newer group hospitals to a steady state performance. Escorts acquisition also helped the management gain the required experience and they are now focused on smaller-scale acquisitions with a bed size of
around 100-150 beds, which in our view is a better strategy. (more…)

MIC Electronics is the only listed / organized player in the LED segment with capabilities in multi color display boards and LED based lighting solutions. MIC has competencies in the design, development and manufacture of LED Video Displays, high-end Electronic and Telecommunication equipment and development of Telecom software since 1988. The company is a technology driven design-to-manufacture player with an early mover advantage and an established clientele. MIC offers a cost effective means of communicating with a longer shelf life than the traditional means of advertising through billboards. (more…)

Astra Microwave Products – AMPL designs, develops and manufactures components and sub-systems for microwave wireless communications systems used in defense, space, and civilian telecom applications. Around 60% of revenues accrue from Defense, 30% from Space and the balance from Telecom. AMPL has 4 state of the art manufacturing facilities. AMPL is expected to be a key supplier of sub-systems for all of India’s future missile/radar/electronic warfare development programs. (more…)

Everonn’s Q2FY09 standalone revenues jumped 49% YoY felled by its ViTELS segment [Virtual Technology Enabled learning Solutions] where the revenues went up by 178.2% YoY (61% of revenue) to 208.8 mn. The company added 156 schools and 123 colleges in this segment. On the other hand, ICT segment saw a revenue degrowth of 15% YoY (39% of revenues) to 130.8 mn. The company added just 80 schools under ICT in Q2FY09. Company also had LoIs from HP and Maharashtra schools.

The operating margins improved by 290 bps YoY to 35.2% in Q2FY09, due to increasing contribution of high margin (more…)