Category: Equity Research

United Phosphorus has a steady earnings profile, Unlike fertilizers, agri chem is relatively well positioned to withstand the agriculture down cycle. Demand for agri chem is less elastic to economic cycles. Industry is consolidated with strong entry barriers and Benefits of Cerexagri integration would start reflecting from FY2010E.
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The Indian Realty Stocks have been decaying like a Radio Active material where they halve again and again. Will it ever stop ? We conducted a research and over the last 10 months most have been decayed by 3 halves – x becomes x/2 and then x/4 and then x/8. Here is the complete list of Real Estate losers. (more…)

The risk of IT demand growth falling to 2001-02 levels is increasing. Gartner models worst case scenario of demand decline in 2009. The BFSI segment accounts for 23.5% of global IT services demand. The current credit crunch is squeezing this segment. We expect this to impact demand adversely. Around 55% of Indian IT companies’ revenues come from the US. IT service providers would have to work harder in conveying cost reduction and/or deliver at predictable costs. Competition on price is likely to turn severe in IT management services. (more…)

HDFC Sec has downgraded Bajaj Hindustan to “Market performer” with a negative bias from BUY rating as the company is likely to be adversely impacted by higher debt and sugar cane costs. UP government has declared cane price (SAP) of Rs 1,400 per tonne for 2008-2009 (Oct-Sep) crushing season against Rs 1,100 per tonne paid by the companies for the last season. Sugar Mill owners have challenged the order in the High Court. Meanwhile, Bajaj Hindustan has agreed to pay Rs 1,400 per tonne for 08-09 crushing season to the farmers and not delay their operations till the court issues directives on this matter. (more…)

In a report released by Reliance Equities, the company has recommended a SELL on the stock of India’s largest Realtor DLF which has stalled work on its Gurgaon’s Mall of India [Largest Mall]

The main trigers for the recommendation are – Volumes will disappoint in the immediate period. Rising receivables during the better part of the cycle (again to result in lower volumes). Commercial property sale to slow post DLF Assets (DAL) transaction. (more…)

The Growth in CNG cylinders’ usage will continue to be robust for the next few years despite the recent fall in crude oil prices as developing economies which account for bulk of the demand rely heavily on imported sources of energy, hydrocarbon supply over the next 5-10 years will not match demand and CNG is definitely economical. (more…)