Category: Equity Research

Goldman Sachs [GS] in a report has released few stocks in the Asia-PAC region which have the potential to double within the next 2 years from current levels and Axis Bank from India has made it to the list.

According to GS strong consumer and corporate banking franchise, the latter to be driven by branch expansion, Axis is poised to emerge as a key competitor within Indian financial services. Corporate Banking will see strong capitalization, breadth of products, and cost competitiveness as key advantages. (more…)

Vedanta / Sterlite has decided not to pursue the proposed group restructuring. According to the company, Vedanta/Sterlite remains committed to simplifying and streamlining its corporate structure in the interests of all shareholders. We view the restructuring cancellation positively. (more…)

Pantaloon Retail India Ltd reported 56%, 114%, and 107% growth in revenues, operating profit, and adjusted net profit for F2008. Even though a number of subsidiaries are in investment mode, consolidated revenues and EBITDA grew by 68% and 130%, respectively.

The company changed the inventory accounting policy to lower of cost (including cost of bringing the goods to the store) and net realizable value. A huge positive as this was one of investors’ most significant concerns. (more…)

The management of Moser Baer India is looking at the business as a “chain of value propositions” – attempt is to move from licensee of technologies to creator/developer of IP. The various businesses company is focused on are Optical media, Photovoltaic (PV) Cells, Home entertainment, and Consumer electronics / IT peripherals. (more…)

The softening of steel prices to benefit equipment makers like Cummins India. Raw material (mainly steel and cast iron) costs accounted for 64% of the revenues for Cummins India in FY08. In response to the sharp increase in material prices (Steel and Cast iron) in Jan-June 2008 period, Cummins had taken price hikes between 2-2.5% across its product categories in the first quarter. The full impact of these hikes is expected in current quarter. (more…)

SBICap Securities has initiated coverage on IDFC with a BUY Rating due to High Quality and Low Leverage. IDFC is now a diversified financial institution with investment banking / stock broking under its hood by the acquisition of SSKI / Sharekhan and Standard Chartered Mutual Fund.

Infra Project Finance:
Project Finance continues to be the largest contributor in terms of volume and bottom line. Since this business is not a high RoE, valuations are pretty much on the lower side. (more…)