Category: Equity Research

HDFC Bank has reported a profit after tax (PAT) of Rs528 crore for Q2FY2009, indicating a growth of 43.3% year on year (yoy). The Q2FY2009 financials include the effect of the merger of Centurion Bank of Punjab (CBoP) with HDFC Bank and hence are not strictly comparable with the performance in the year-ago period.

The net interest income (NII) for the quarter stood at Rs1,866.5 crore, up 60.5% yoy buoyed by the CBoP acquisition-led balance sheet expansion and healthy margins. The reported core net interest margin (NIM) stood at a healthy 4.2% compared with 4% a year ago. The capital raised by HDFC Bank and CBoP during FY2008 has contributed to the same. (more…)

In the last two trading sessions, the benchmark BSE Sensex has plunged by more than 1,200 points on massive unloading by beleaguered foreign institutional investors, as the financial crisis spread to Europe. Indian Real Estate saga built on paper foundation has collapsed and all the realty stocks hit a new low today. Taking the plunge were most core sector stocks as well – Reliance Infrastructure, Tata Steel, Tata Power, Reliance Industries, BHEL, ACC and Larsen & Toubro. (more…)

HDFC Sec has initiated coverage on Welspun Gujarat Stahl Rohren – WGSRL with a Long Term BUY rating. The fundamentals of the company remain unchanged post Q1FY09 results with minor cut in plate production for FY09E and FY10E which will be partly compensated by volumes in the higher grade (API) category. WGSRL is a mere converter of of various forms of steel and not a steel producer. The pipe segment globally is of national interest in terms (more…)

The fertiliser sector is expected to post strong Q2FY09 earnings owing to good volumes in urea & DAP backed by an encouraging policy and robust growth in the trading business. The Urea Investment Policy was announced in the quarter, providing import parity price (IPP)-linked pricing for all incremental urea capacities. (more…)

The indefinite delay in taking off of Greater Noida International Airport has impacted the Land Bank of JP Associates and its Yamuna Expressway project. JP Associates has around 3750 acres of land bank along the Yamuna Expressway around the proposed airport. Adding to JP Associates’ woes is the weakening property prics in the NCR region. Merill has thus taken off the value of land bank in sum of parts valuation of JP Associates. (more…)

The benchmark Indian indices Sensex and Nifty have corrected ~37% from their peak. However, the BSE Realty Index has fallen by 70% and some stocks in the property index have fallen more than that. Property prices have started correcting every where, Residential was the first one to be hit followed by Commercial and Retail now. Worli and Bandra Kurla Complex have seen big fall in rental values. We present to you the performance of Realty Stocks in the past 9 months. (more…)